Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
Post-Meeting Agenda Package - Palm Desert City Council - Regular Meeting_Feb15_2024
PALM DESERT CITY COUNCIL REGULAR MEETING POST-MEETING AGENDA Thursday, February 15, 2024 3:30 p.m. Council Chamber, City Hall 73-510 Fred Waring Drive Palm Desert, California This is a joint meeting of the Palm Desert City Council, Successor Agency to the Palm Desert Redevelopment Agency, and the Palm Desert Housing Authority. Pursuant to Assembly Bill 2449, this meeting may be conducted as a hybrid meeting allowing public access via teleconference or in person, and up to two Councilmembers may attend remotely. WATCH THE MEETING LIVE: Watch the City Council meeting live at the City’s website: www.palmdesert.gov under the “Council Agenda” link at the top of the homepage, or on the City’s YouTube Channel. OPTIONS FOR PARTICIPATING IN THIS MEETING: If unable to attend the meeting in person, you may choose from the following options: OPTION 1: VIA EMAIL Send your comments by email to: CouncilMeetingComments@palmdesert.gov. Emails received prior to 10:00 a.m. on the day of the City Council meeting will be made part of the record and distributed to the City Council. Emails will not be read aloud at the meeting. OPTION 2: LIVE VIA ZOOM Access via palmdesert.gov/zoom or zoom.us, click “Join Meeting” and enter Webinar ID 833 6744 9572. 1. OPTION 3: LIVE VIA TELEPHONE (213) 338-8477 and enter Meeting ID 833 6744 9572 followed by #.1. Indicate that you are a participant by pressing # to continue.2. During the meeting, press *9 to add yourself to the queue and wait for the Mayor or City Clerk to announce your name/phone number. Press *6 to unmute your line and limit your comments to three minutes. 3. Pages 1.CALL TO ORDER - CLOSED SESSION - 3:30 P.M. 2.PUBLIC COMMENT FOR CLOSED SESSION ITEMS ONLY This time has been set aside for members of the public to address the City Council on items contained only on the Closed Session Agenda within the three- minute time limit. Speakers may utilize one of the three options listed on the first page of this agenda. 3.RECESS TO CLOSED SESSION 4.CLOSED SESSION AGENDA The following items will be considered in closed session: 4.a Closed Session Meeting Minutes: January 25, 2024 4.b Conference with Real Property Negotiations pursuant to Government Code Section 54956.8 4.b.1 PROPERTY DESCRIPTION: 73710 FRED WARING DRIVE, PALM DESERT Agency: City of Palm Desert City Negotiator: Todd Hileman/Chris Escobedo/Eric Ceja Negotiating Parties: N/A Under Negotiation: Price and Terms *4.c Conference with Legal Counsel regarding Significant Exposure to Litigation pursuant to Government Code Section 54956.9(d)2 One (1) matter that, under the existing circumstances, the City Attorney believes creates significant exposure to litigation. 5.ROLL CALL - REGULAR MEETING - 4:00 P.M. 6.PLEDGE OF ALLEGIANCE Mayor Pro Tem Harnik 7.INSPIRATION Councilmember Trubee 8.REPORT OF CLOSED SESSION City Attorney Shah 9.AWARDS, PRESENTATIONS, AND APPOINTMENTS 9.a PROCLAMATION - COLORECTAL CANCER AWARENESS MONTH 13 9.b PRESENTATION REGARDING THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION'S 2024 DRAFT TRAFFIC RELIEF PLAN 17 9.c CVAG PRESENTATION RELATIVE TO DUST MITIGATION 10.CITY MANAGER COMMENTS 10.a SHERIFF'S DEPARTMENT UPDATE City Council Meeting Page 2 of 1128 11.MAYOR/COUNCILMEMBER REPORTS AND REQUESTS FOR ACTION 12.NONAGENDA PUBLIC COMMENTS 31 This time has been set aside for the public to address the City Council on issues that are not on the agenda for up to three minutes. Speakers may utilize one of the three options listed on the first page of the agenda. Because the Brown Act does not allow the City Council to act on items not listed on the agenda, members may briefly respond or refer the matter to staff for a report and recommendation at a future meeting. 13.CONSENT CALENDAR All matters listed on the Consent Calendar are considered routine and may be approved by one motion. The public may comment on any items on the Consent Agenda within the three-minute time limit. Individual items may be removed by the City Council for a separate discussion. RECOMMENDATION: To approve the consent calendar as presented. 13.a APPROVAL OF CITY COUNCIL, SUCCESSOR AGENCY, AND HOUSING AUTHORITY MINUTES 33 RECOMMENDATION: Approve the Minutes of January 25, 2024. 13.b APPROVAL OF WARRANTS 41 RECOMMENDATION: Approve the warrants issued for the period 11/29/2023 to 2/1/2024. 13.c RECEIVE AND FILE APPLICATIONS FOR ALCOHOLIC BEVERAGE LICENSES 83 RECOMMENDATION: Receive and file the applications for Alcoholic Beverage Licenses for: 1. RJHS Gas & Food Store, Inc. ARCO AMPM 73980 HWY 111, Palm Desert 13.d ADOPTION OF ORDINANCE NO. 1407 REPEALING SECTION 2.38.050 OF CHAPTER 2.38 (“GENERAL MUNICIPAL ELECTIONS”) OF TITLE 2 (“ADMINISTRATION AND PERSONNEL”) OF THE PALM DESERT MUNICIPAL CODE 87 RECOMMENDATION: Adopt Ordinance No. 1407 entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, REPEALING SECTION 2.38.050 OF CHAPTER 2.38 (“GENERAL MUNICIPAL ELECTIONS”) OF TITLE 2 (“ADMINISTRATION AND PERSONNEL”) OF THE PALM DESERT MUNICIPAL CODE IN ORDER TO ELIMINATE RANKED CHOICE VOTING FOR THE ELECTION OF MEMBERS OF THE CITY COUNCIL”. City Council Meeting Page 3 of 1128 13.e ADOPTION OF ORDINANCE NO. 1408 ADDING CHAPTER 2.74 TO TITLE 2 OF THE PALM DESERT MUNICIPAL CODE, ESTABLISHING A MUNICIPAL LIBRARY FOR THE CITY, AND MAKING A FINDING OF EXEMPTION UNDER CEQA 93 RECOMMENDATION: Adopt Ordinance No. 1408 entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ADDING CHAPTER 2.74 TO TITLE 2 OF THE PALM DESERT MUNICIPAL CODE, ESTABLISHING A MUNICIPAL LIBRARY FOR THE CITY, AND MAKING A FINDING OF EXEMPTION UNDER CEQA”. 13.f AWARD OF CONTRACT TO LANCE, SOLL & LUNGHARD, LLP TO PERFORM PROFESSIONAL AUDITING SERVICES FOR THE FISCAL YEARS ENDING JUNE 30, 2024, THROUGH 2026 99 RECOMMENDATION: Approve a contract to Lance, Soll & Lunghard, LLP (LSL, CPAS) in substantial form to perform professional auditing services for the fiscal years ending June 30, 2024, through 2026 in the amount of $89,082 for the first year, and two subsequent years as outlined in Exhibit C of the contract. 1. Authorize the Finance Director to negotiate other services that may be necessary from time to time in an amount reasonable for such services. 2. Authorize the City Attorney to make any necessary, non-monetary changes to the agreement. 3. Authorize the City Manager to execute the contract and the City Manager or his designee to take any actions necessary to facilitate the contract. 4. 13.g APPROVE A THREE-YEAR LEASE AGREEMENT NO. C47060 WITH TWO, ONE-YEAR EXTENSIONS BETWEEN THE CITY OF INDIAN WELLS AND CITY OF PALM DESERT FOR THE USE OF INDIAN WELLS FIRE STATION NO. 55 153 RECOMMENDATION: Approve a three-year lease Agreement No. C47060 with two, one- year extensions between the City of Indian Wells and the City of Palm Desert for the use of Indian Wells Fire Station No. 55. 1. Authorize the City Attorney to make any necessary, nonmonetary changes to the agreement. 2. Authorize the City Manager or designee to execute the lease agreement between the City of Indian Wells and the City of Palm Desert. 3. City Council Meeting Page 4 of 1128 13.h APPROVE AGREEMENT WITH FLOCK SAFETY FOR AUTOMATED LICENSE PLATE RECOGNITION SOFTWARE SUBSCRIPTION FOR A TERM OF FIVE YEARS 161 RECOMMENDATION: Approve Agreement No. C47070 with Flock Group, Inc., dba Flock Safety, for Automated License Plate Recognition (ALPR) software subscription for a term of five (5) years. 1. Authorize the City Attorney to make necessary, non-monetary changes to the Agreement. 2. Authorize the City Manager to execute the Agreement and any documents necessary to effectuate the actions taken herewith. 3. 13.i RECEIVE AND FILE THE CITY OF PALM DESERT AUDITED ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2023 189 RECOMMENDATION: Receive and file the audited Annual Comprehensive Financial Report (ACFR) for the City of Palm Desert for the Fiscal Year ended June 30, 2023. 13.j RECEIVE AND FILE THE INDEPENDENT ACCOUNTANTS’ REPORT ON AGREED-UPON PROCEDURES PERFORMED ON THE MEASURE A TRANSPORTATION FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2023 427 RECOMMENDATION: Receive and file the Independent Accountants’ Report on Agreed-Upon Procedures Performed on the Measure A Transportation Fund for the fiscal year ended June 30, 2023. 13.k ACCEPT CONTRACT NO. C45240 AS COMPLETE FOR THE FRED WARING DRIVE STREET IMPROVEMENT PROJECT (PROJECT NO. CST00022) 439 RECOMMENDATION: Accept Contract No. C45240 with Matich Corporation of San Bernadino, California, for the Fred Waring Drive Street Rehabilitation Project as complete and authorize the City Clerk to file the Notice of Completion (Project No. CST00022). 1. Authorize the Mayor to execute and the City Clerk to file the Notice of Completion. 2. 13.l APPROVE SPECIAL EVENT PREPAID EXPENDITURES FOR FISCAL YEAR 2024/25 445 RECOMMENDATION: Approve prepaid expenditures in an amount not to exceed $130,000 from the Fiscal Year 2024/25 Budget for production of the 2024 Independence Day Celebration and October Concerts in the Park Series. 1. Authorize the City Manager to execute vendor contracts associated with production of the events. 2. City Council Meeting Page 5 of 1128 13.m RECEIVE AND FILE THE 2024 WORK PLAN FOR THE PUBLIC SAFETY COMMITTEE 459 RECOMMENDATION: Receive and file the 2024 Work Plan for the Public Safety Committee. 13.n PURCHASE OF A STREET SWEEPER TO IMPROVE CITYWIDE ROADWAY AND PARKING LOT MAINTENANCE 461 RECOMMENDATION: Authorize the purchase of an Elgin Broom Bear Street Sweeper from Haaker Equipment Company from La Verne, California, in the amount of $454,194.27. 1. Authorize the Director of Finance to set aside a contingency of $25,000 for any unforeseen fees and ancillary equipment. 2. Authorize the Finance Director to appropriate funds in the amount $479,194.27 from unobligated Equipment Replacement Fund to Account No. 5304310-4403000. 3. Authorize City Manager or designee to approve the use of the contingency and any documents necessary to effectuate actions taken herewith. 4. 13.o REAFFIRM APPROVAL OF A CONSERVATION EASEMENT WITH THE COACHELLA VALLEY CONSERVATION COMMISSION FOR LANDS WITHIN THE COACHELLA VALLEY MULTIPLE SPECIES HABITAT CONSERVATION PROGRAM 477 RECOMMENDATION: Reaffirm approval of the Conservation Easement with the Coachella Valley Conservation Commission (CVCC) for lands within the Coachella Valley Multiple Species Habitat Conservation Program (CVMSHCP). 1. Authorize the City Manager to execute the Conservation Easement document. 2. 13.p RECEIVE AND FILE AN INFORMATIONAL REPORT FOR THE CITY- OWNED PARCEL LOCATED AT THE NORTHEAST CORNER OF OCOTILLO DRIVE AND TUMBLEWEED LANE 521 RECOMMENDATION: Receive and file an informational report for the City-owned parcel located at the northeast corner of Ocotillo Drive and Tumbleweed Lane. City Council Meeting Page 6 of 1128 13.q RECEIVE AND FILE REPORT RELATED TO TRANSIENT OCCUPANCY TAX COMPLIANCE PROGRAM PERFORMED ON COLLECTIONS RECEIVED DURING FISCAL YEARS 2018-2019 THROUGH 2020-2021 AND WAIVE CERTAIN FINDINGS 599 RECOMMENDATION: Receive and file a report related to Transient Occupancy Tax (TOT) Compliance Program for collections during Fiscal Years 2018-2019 through 2020-2021. 1. Authorize Director of Finance to waive collection of findings related to attrition and cancellation charges and issue a one-time Notice of Forgiveness. 2. Authorize Director of Finance to collect all other findings and authorize payment to Avenu for completion of Compliance Review Final Report. 3. 13.r PALM DESERT REDISTRICTING 2023: PUBLIC EDUCATION AND OUTREACH PLAN SUMMARY REPORT – REPORT ON THE BASIS ON WHICH THE CITY COUNCIL MADE ITS DECISIONS IN ACHIEVING COMPLIANCE WITH REDISTRICTING REQUIREMENTS AND CRITERIA [ELECTIONS CODE 21130(F)] 615 RECOMMENDATION: Receive and file the Redistricting Public Education and Outreach Summary Report. 1. Pursuant to Elections Code 21130(f), approve the report which explains the basis on which the City Council made its decisions in achieving compliance with the redistricting requirements and criteria. 2. 13.s APPROVAL OF PARK ORDINANCE WAIVERS FOR THE 2024 PALM DESERT HALF MARATHON AND 5K AND WILDFLOWER FESTIVAL EVENTS 637 RECOMMENDATION: Approve temporary waiver of the following Palm Desert Municipal Code (PDMC) sections for the 2024 Palm Desert Half Marathon and 5K and Wildflower Festival Events: 11.01.20 (Hours of Use in City Parks)a. 11.01.140 (Amplified Sound in City Parks)b. 11.01.080 H (Camping)c. 11.01.080 O (Placement of Advertising Signage in City Parks)d. 11.01.080 Q (Vendor Sales in City Parks)e. 11.01.080 W (Possession/Consumption of Alcohol in City Parks) pursuant to PDMC 9.58.040 f. City Council Meeting Page 7 of 1128 13.t ESTABLISHMENT OF A CITY COUNCIL AD HOC SUBCOMMITTEE ON THE NAMING OF PARKS 651 RECOMMENDATION: Confirm the appointment of Councilmembers Kelly and Trubee to a City Council Ad Hoc Subcommittee on the naming of parks. 13.u ESTABLISHMENT OF A CITY COUNCIL AD HOC SUBCOMMITTEE ON MAYORAL ROTATION 657 RECOMMENDATION: Confirm the appointment of Mayor Pro Tem Harnik and Mayor Quintanilla to a City Council Ad Hoc Subcommittee on the Mayoral Rotation. 13.v RATIFY A LETTER TO THE CALIFORNIA LEGISLATURE URGING THE PROTECTION OF DEDICATED REGIONAL EARLY ACTION PLANNING GRANTS PROGRAM FUNDING 661 RECOMMENDATION: Ratify a letter to the California Legislature urging the protection of dedicated Regional Early Action Planning Grants (REAP 2.0) program funding. 13.w ADOPT RESOLUTION NO. 2024-004 ESTABLISHING THE 2024 CITY COUNCIL GOALS AND PRIORITIES 669 RECOMMENDATION: Adopt Resolution No. 2024-004 entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ESTABLISHING THE CITY COUNCIL GOALS AND PRIORITIES FOR THE 2024 CALENDAR YEAR.” 13.x RECEIVE AND FILE THE INVESTMENT REPORT, GENERAL FUND, PARKVIEW OFFICE COMPLEX, AND DESERT WILLOW GOLF RESORT FINANCIAL MONTHLY REPORTS FOR NOVEMBER AND DECEMBER 2023 697 RECOMMENDATION: Receive and file the monthly Investment Report, General Fund, Parkview Office Complex, and Desert Willow Golf Resort Financial Monthly Reports for November and December 2023. 14.ACTION CALENDAR The public may comment on individual Action Items within the three-minute time limit. Speakers may utilize one of the three options listed on the first page of the agenda. City Council Meeting Page 8 of 1128 14.a APPROVAL OF RESOLUTION NOS. 2024-005 AND 2024-006 APPROVING 2023-24 MID-YEAR BUDGET ADJUSTMENTS AND REVISED STAFF ALLOCATION SCHEDULE 787 RECOMMENDATION: Adopt Resolution No. 2024-005 entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING THE FISCAL YEAR 2023-24 BUDGET AS A RESULT OF MID-YEAR ADJUSTMENTS”. 1. Adopt Resolution No. 2024-006 entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ADOPTING AUTHORIZED CLASSIFICATIONS AND ALLOCATED POSITIONS INCLUDED HEREIN ATTACHED AS EXHIBIT “A” AND RESCINDING RESOLUTION NO. 2023- 022”. 2. 14.b APPROVE RESOLUTION NO. 2024-007 AUTHORIZING THE ISSUANCE OF UNIVERSITY PARK COMMUNITY FACILITIES DISTRICT NO. 2021-1 SPECIAL TAX BONDS, SERIES 2024 827 RECOMMENDATION: Adopt Resolution No. 2024-007 entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ACTING FOR ITSELF AND AS THE LEGISLATIVE BODY OF CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK), TO AUTHORIZE THE ISSUANCE OF THE DISTRICT’S SPECIAL TAX BONDS, SERIES 2024, AND APPROVING CERTAIN DOCUMENTS AND TAKING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH)". 14.c APPROVE AGREEMENT NO. C47080 IN SUBSTANTIAL FORM BY AND BETWEEN THE CITY OF PALM DESERT AND THE COUNTY OF RIVERSIDE SETTING THE TERMS FOR WITHDRAWAL FROM THE RIVERSIDE COUNTY LIBRARY SYSTEM 1051 RECOMMENDATION: Approve Agreement No. C47080 in substantial form and authorize the City Manager to finalize the agreement with the County of Riverside setting the terms for withdrawal from the Riverside County Library system. 1. Authorize the City Attorney to make any necessary, non-monetary changes to the agreement. 2. Authorize the City Manager to execute all documents necessary to effectuate this action. 3. City Council Meeting Page 9 of 1128 14.d EXECUTE LEASE AGREEMENT NO. C47090 BETWEEN THE CITY OF PALM DESERT AND THE DESERT COMMUNITY COLLEGE DISTRICT FOR 20,802 SQUARE FEET OF SPACE IN THE LIBRARY BUILDING LOCATED AT THE SOUTH END OF THE CAMPUS 1071 RECOMMENDATION: Authorize the City Manager to enter into an up to five-year lease Agreement No. C47090 with the Desert Community College District to lease 20,802 square feet of space in the library building at the south end of the campus in the base-year amount of $112,310.37 with a separate $23,000 credit in year-one only. 1. Authorize the City Attorney to make any necessary non-monetary changes to the agreement. 2. Authorize the City Attorney to make any necessary conforming and clarifying changes acceptable to the City Manager. 3. Authorize the City Manager to execute all documents necessary to effectuate this action. 4. 14.e APPROVE AMENDMENT NO. 3 TO THE CITY MANAGER'S EMPLOYMENT AGREEMENT NO. C41110 EFFECTIVE MARCH 1, 2024 1125 RECOMMENDATION: Approve Amendment No. 3 to the City Manager’s Employment Agreement No. C41110 with L. Todd Hileman (Exhibit A) effective March 1, 2024. 15.PUBLIC HEARINGS The public may comment on individual Public Hearing Items within the three- minute time limit. The applicant or appellant will be provided up to five minutes to make their presentation. Speakers may utilize one of the three options listed on the first page of this agenda. 16.INFORMATION ITEMS 17.ADJOURNMENT City Council Meeting Page 10 of 1128 18.PUBLIC NOTICES Agenda Related Materials: Pursuant to Government Code §54957.5(b)(2) the designated office for inspection of records in connection with this meeting is the Office of the City Clerk, Palm Desert Civic Center, 73-510 Fred Waring Drive, Palm Desert. Staff reports for all agenda items considered in open session, and documents provided to a majority of the legislative bodies are available for public inspection at City Hall and on the City’s website at www.palmdesert.gov by clicking “Council Agenda” at the top of the page. Americans with Disabilities Act: It is the intention of the City of Palm Desert to comply with the Americans with Disabilities Act (ADA) in all respects. If, as an attendee or a participant at this meeting, or in meetings on a regular basis, you will need special assistance beyond what is normally provided, the city will attempt to accommodate you in every reasonable manner. Please contact the Office of the City Clerk, (760) 346-0611, at least 48 hours prior to the meeting to inform us of your needs and to determine if accommodation is feasible. AFFIDAVIT OF POSTING I, Níamh M. Ortega, Assistant City Clerk of the City of Palm Desert, do hereby certify, under penalty of perjury under the laws of the State of California, that the foregoing agenda for the Palm Desert City Council, Successor Agency for the Palm Desert Redevelopment Agency, and Housing Authority, was posted on the City Hall bulletin board and City website www.palmdesert.gov no less than 72 hours prior to the meeting. /S/ Níamh M. Ortega Assistant City Clerk City Council Meeting Page 11 of 1128 Page 12 of 1128 Page 13 of 1128 Page 14 of 1128 WHEREAS, colorectal cancer is the second-leading cause of cancer deaths in the United States among men and women combined; and WHEREAS, colorectal cancer is one of the few cancers that can be prevented with timely screening, but 1 in 3 eligible Americans are not up to date on screening and it is estimated to be the number one cancer killer for those ages 20-49 by 2030; and WHEREAS, Black Americans are 20% more likely to be diagnosed with colorectal cancer and about 40% more likely to die from the disease than other groups; and WHEREAS, colorectal cancer is expected to account for 11% of cancer deaths among Hispanic men and 9% of cancer deaths for Hispanic women; and WHEREAS, in 2023 there were approximately 153,020 new cases and 52,550 deaths from colorectal cancer in the United States alone; and WHEREAS, the national goal established by the National Colorectal Cancer Roundtable is to strive to increase timely screening rates to 80% in every community for all Americans eligible for screening; and WHEREAS, increased education and community support services such as those provided by Palm Springs based organizations like Cheeky Charity and others are needed to enable the prevention and early detection of colorectal cancer to increase chances of survival; and WHEREAS, observing a Colorectal Cancer Awareness Month during the month of March would provide a special opportunity to increase awareness and offer education on the importance of early detection and screening of colorectal cancer; NOW, THEREFORE, we the City Council of Palm Desert, California, by the power vested in us, do hereby proclaim the month of March 2024 to be: Colorectal Cancer Awareness Month In Witness Whereof, I have hereunto set my hand and have caused the Official Seal of the City of Palm Desert, California, to be affixed this 15th day of February 2024. Page 15 of 1128 Page 16 of 1128 Page 1 of 1 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 15, 2024 PREPARED BY: Anthony J. Mejia, City Clerk REQUEST: PRESENTATION REGARDING THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION’S 2024 DRAFT TRAFFIC RELIEF PLAN RECOMMENDATION: Receive and file a presentation from Anne Mayer, Executive Director of the Riverside County Transportation Commission (RCTC), regarding the 2024 Draft Traffic Relief Plan. BACKGROUND/ANALYSIS: At the request of Mayor Pro Tem Harnik, Anne Mayer, Executive Director of RCTC, will provide a brief presentation informing the City Council about the RCTC 2024 Draft Traffic Relief Plan. Legal Review: This report has been reviewed by the City Attorney’s office. FINANCIAL IMPACT: There is no fiscal impact associated with this presentation. ATTACHMENT: Presentation – 2024 Draft Traffic Relief Plan Page 17 of 1128 Page 18 of 1128 1 2024 DRAFT TRAFFIC RELIEF PLAN City of Palm Desert February 15, 2024 Anne Mayer, Executive Director Page 19 of 1128 2 RCTC - Providing Transportation Solutions To Connect Our Communities •County-wide transportation improvements •Measure A •Support Metrolink, RTA, SunLine & other transit operators •Toll operations Page 20 of 1128 3 RCTC is Your Team Coachella Valley Rail Interchanges Transit Agency Operations Funding Highway Local Streets & Roads Page 21 of 1128 4 2023 Public Survey 93%91%89%87%84% 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 Keeping roads in good condition Pothole repair Reinforcing highways, roads and bridges from flooding and earthquakes Improving safety Keeping senior, student, disabled and veteran bus fares low Riverside County residents' transportation priorities ranking (very or somewhat important) Page 22 of 1128 5 Traffic Relief Plan: Looking Forward Draft 2024 Traffic Relief Plan... •Identifies County-wide transportation projects and services •Developed from public input •Over $25 billion in transportation investment •Updates the 2020 Commission-adopted TRP Draft 2024 Traffic Relief Plan: NOT funded •Unless voters approve funding Page 23 of 1128 Coachella Valley 6 •CVAG administers funding distribution •Transportation Project Prioritization Study (TPPS) •VMT mitigation, support TOD/housing, CVMSHCP •Projects funding for multiple categories Page 24 of 1128 •Improve connections to I-10,Highway 111, and 74 •Local road repairs, safety improvements, and traffic management systems •Highway 111, Dinah Shore Drive, Washington St., Monterey Ave., Fred Waring Dr., Cook St. •Construct multi-modal transportation corridors on major roads such as Ave. 50 •Bridges, resilient infrastructure and flood control investments in Coachella Valley 7 TRP Example Projects •Coachella Valley Rail •Transit priority lanes, zero-emission buses, bus shelters and improving access and affordability •CV Link extensions and Palm Desert Link •Complete streets and multi-modal connections •Preserve Coachella Valley’s natural areas •Coachella Valley Multiple Species Habitat Conservation Plan (CVMSHCP) •Freeway Service Patrol on I-10 •Employer partnerships Page 25 of 1128 Accountability to Taxpayers 8 •Independent audits and mandatory reviews •Local Voice. Local Control –No funds to be diverted to Sacramento or Washington D.C. •No more than 1% can be used for administrative salaries •Cities and County working together with RCTC Page 26 of 1128 Economic Impact & Regional Investment 9 Over 30 years: Note: Totals may not add due to rounding *Jobs Supported = An Industry-specific mix of full-time, part-time, and seasonal employment that are supported by project expenditures this includes Direct, Induced, and Indirect Jobs supported ** Direct, Induced, and Indirect Impact total Revenue Scenario TRP Estimated Investment Jobs Supported Workforce Income Economic Output One-Cent $25 billion 168,000*$10.9 billion**$30.9 billion** Palo Verde Valley (Blythe Area) ~$100 million Coachella Valley ~$5 billion Western Riverside County ~$20 billion Ensure revenues raised in each region stay there Page 27 of 1128 10 2023 Public Survey – City of Palm Desert 67%69% 82% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Transportation Funding Support Support for funding measure: Riverside County Voters Support for funding measure: Rancho Mirage, Indian Wells, Palm Desert Great or some need for funding •82% of Riverside County voters see a need for transportation funding •69% of Rancho Mirage, Indian Wells, Palm Desert voters initially support transportation funding measure •67% of Riverside County voters initially support a transportation funding measure Page 28 of 1128 11 •Submit your feedback! •Traffic Relief Plan at TrafficReliefPlan.Org •Digital and grass-roots outreach efforts Your Voice. Your Plan. rctc.org 951-787-7141 trafficreliefplan@rctc.org @theRCTC TrafficReliefPlan.org Page 29 of 1128 Page 30 of 1128 From:jonathan Vander molen To:CouncilMeeting Comments Subject:Palm Desert R/C Raceway Date:Wednesday, February 7, 2024 2:43:45 AM Palm Desert City Council members, I hope this email finds you well This is regarding the Palm Desert R/C Raceway behind the Target shopping center on Painters Path. Let me start off by saying I am a Hobby shop business owner in the Valley and I have had a lot of involvement with the Raceway in the past and still continue to try to support and frequent. Since around 2010 when a young kid re opened the track I have been going there with my Son, Now 18. Thereafter with my other two sons, 11 and 14 (adopted) and my daughter who is now 21. We are a hobby family and I see the Racetrack as great potential for people with addiction problems, PTSD issues, Father Son (and daughter) bonding and many more. This is why I am so happy to be part of my own Hobby Shop and I have made a living in the industry at Shops for the past 7 years. My recent visits to the Race Track have been uncomfortable, confrontational and rare. I was an owner in the past of this beautiful track and understand it's purpose. I have voiced my concerns to the current Owners (Adam and Ronda Drake) through Social media and emails. I have been disappointed to see that they seem to use it as their personal track and testing facilities, opening once a month at the most and at some times not having any opening days for months at a time. But they have allowed their personal friends or racing team buddies to have private track sessions. They did not appreciate my candor in this matter and have chosen to ignore, block and make things uncomfortable. One of their "friends" that holds keys to the facility has constantly harrassed and threatened me personally and physically. Along with the fact that when they have large events (which they profit thousands of dollars in cash), there are many of the attendees that drink, sometimes heavily and smoke cigarettes and marijuana. It makes for an unpleasant environment especially for young children. As a business owner in the hobby industry I understand that since Mr and Mrs Drake hold a high position in the R/C Racing Industry I will be blacklisted from them and many negative comments spread, and that's ok. What I'm fighting for is a positive environment for everyone to come and play, no matter racer, basher, or someone that wants to have fun. I get a minimum of one phone call or verbal question about the track and whether it is open, many people think I have a part in it. I have to tell them unfortunately I do not. Contact them on Faceboook, unfortunately they don't respond well and not everyone has facebook. It seems they only want to open the property if they're going to make a substantial amount of money. They also sell products on site, motors, tires, parts, etc... I'm not sure if that's permitted but that does hurt other local businesses. I would love to propose having my 18 almost 19 year old son helping to open the track a couple days a week, on a regular schedule. And have a Free Track day for people that cannot afford the $20 daily fee. Possibly come up with a yearly membership program to support the expenses of operation (which I know to be very low). As a Hobby shop owner I could provide vehicles for people to rent and since I'm three blocks away, I could provide a code key for a small daily practice fee on the other days that someone isn't present. Ensure they sign a waiver and have cameras installed on the property. This property has so much potential to do good for the community, it's such a shame that theyre never open. One day a month is just not enough in my opinion. Someone local should be caretaking of it. The last two owners were "Pro Racers" and for the past 4 or 5 years its rarely been open. Let me know what my family and I can do to help. We have a local group that will support us. Thank you for your time Jonathan VanderMolen Page 31 of 1128 Page 32 of 1128 Palm Desert City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Regular Meeting Minutes January 25, 2024, 3:30 p.m. Present: Mayor Karina Quintanilla, Mayor Pro Tem Jan Harnik, Councilmember Kathleen Kelly, Councilmember Gina Nestande, Councilmember Evan Trubee 1. CALL TO ORDER - CLOSED SESSION - 3:30 P.M. A Regular Meeting of the Palm Desert City Council was called to order by Mayor Quintanilla on Thursday, January 25, 2024, at 3:30 p.m. in the Council Chamber, City Hall, located at 73-510 Fred Waring Drive, Palm Desert, California. 2. PUBLIC COMMENT FOR CLOSED SESSION ITEMS ONLY 3. RECESS TO CLOSED SESSION Mayor Quintanilla adjourned to Closed Session at 3:30 p.m. 4. CLOSED SESSION AGENDA The following items were considered in closed session: 4.a Closed Session Meeting Minutes: January 11, 2024 4.b Conference with Legal Counsel regarding Significant Exposure to Litigation pursuant to Government Code Section 54956.9(b) 5. ROLL CALL - REGULAR MEETING - 4:00 P.M. 6. PLEDGE OF ALLEGIANCE Councilmember Nestande led the Pledge of Allegiance. 7. INSPIRATION Mayor Quintanilla provided words of inspiration. 8. REPORT OF CLOSED SESSION City Attorney Shah stated that in the closed session, the City Council unanimously authorized staff and the City Attorney to pursue abatement of public nuisance conditions on real property known as Site B of the property formerly known as the Executive Course at Palm Desert Country Club and now owned by Villas PD, LLC. The City Council's actions includes actions including but not limited to recording any necessary notices and liens against the property, obtaining inspection and abatement orders to abate unlawful stockpiling of dirt or other materials on the property, and any necessary cost recovery actions related thereto. Page 33 of 1128 Palm Desert City Council Meeting Minutes January 25, 2024 2 9. AWARDS, PRESENTATIONS, AND APPOINTMENTS None. 10. CITY MANAGER COMMENTS City Manager Hileman recognized and congratulated Finance Director Chavez and the Finance Department for receiving the Government Finance Officers Association's Distinguished Budget Award for the first time. Community Facilities Manager Muir provided a staff report relative to the operations of the new Civic Center pickleball courts in their first six months of operation. 10.a CERTIFIED AUTISM CENTER DESIGNATION Human Resources Manager Staehle narrated a PowerPoint presentation relative to the Certified Autism Center designation and responded to City Council inquiries. 11. MAYOR/COUNCILMEMBER REPORTS AND REQUESTS FOR ACTION The Mayor and Councilmembers reported on their attendance at various meetings and events. Councilmember Trubee congratulated the YMCA Under 10 Flag Football team on their recent qualification to represent the Coachella Valley at the Pro Bowl in Florida. Mayor Pro Tem Harnik thanked Congressman Calvert for arranging meetings with Union Pacific relative to Riverside County Transportation Commission's CV Rail project. Councilmember Kelly encouraged residents to review the video of the City Council's study session to learn more about the Cotino development in Rancho Mirage and its possible impacts to Palm Desert residents. Mayor Quintanilla shared information on the Olive Crest's mission to prevent child abuse and assisting families in crisis, noting their recent opening of a location in Palm Desert. 12. NON-AGENDA PUBLIC COMMENTS David Bryan, expressed his opposition to and negative experience with CV Link routes throughout Palm Desert. Barbara Wasserkrug, Palm Desert resident, reported on on the negative side effects of being a "15 Minute Smart City". Nancy Gutierrez, Palm Desert resident, spoke against smart cities and redistricting. Page 34 of 1128 Palm Desert City Council Meeting Minutes January 25, 2024 3 13. CONSENT CALENDAR City Clerk Mejia noted a staff modification to Item 13e as demonstrated in the Q & A Memorandum. Motion by: Mayor Pro Tem Harnik Seconded by: Councilmember Nestande To approve the consent calendar as presented. Motion Carried (5 to 0) 13.a APPROVAL OF CITY COUNCIL, SUCCESSOR AGENCY, AND HOUSING AUTHORITY MINUTES Motion by: Mayor Pro Tem Harnik Seconded by: Councilmember Nestande Approve the Minutes of January 11, 2024. Motion Carried (5 to 0) 13.b APPROVAL OF WARRANTS Motion by: Mayor Pro Tem Harnik Seconded by: Councilmember Nestande Approve the warrants issued for the period 1/9/2024 to 1/12/2024. Motion Carried (5 to 0) 13.c ACCEPT REASSIGNMENT OF CITY COUNCIL LIAISON TO CULTURAL RESOURCE PRESERVATION COMMITTEE Motion by: Mayor Pro Tem Harnik Seconded by: Councilmember Nestande Appoint Mayor Pro Tem Harnik as the City Council Liaison to the Cultural Resource Preservation Committee for the remainder of 2024. Motion Carried (5 to 0) 13.d APPROPRIATE FUNDS TO COVER COSTS ASSOCIATED WITH VARIOUS NECESSARY LIBRARY IMPROVEMENTS Motion by: Mayor Pro Tem Harnik Seconded by: Councilmember Nestande Authorize Director of Finance to appropriate funds to Account No. 4524136- 4400100 in the amount of $692,000. Motion Carried (5 to 0) Page 35 of 1128 Palm Desert City Council Meeting Minutes January 25, 2024 4 13.e ADOPT RESOLUTION NO. 2024-001 UPDATING COMMUNITY EVENT SPONSORSHIP GUIDELINES Motion by: Mayor Pro Tem Harnik Seconded by: Councilmember Nestande Adopt Resolution No. 2024-001 entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, UPDATING THE COMMUNITY EVENT SPONSORSHIP POLICY”, as amended. Motion Carried (5 to 0) 13.f ADOPT RESOLUTION NO. 2024-002 UPDATING OUTSIDE AGENCY FUNDING PROGRAM GUIDELINES Motion by: Mayor Pro Tem Harnik Seconded by: Councilmember Nestande Adopt Resolution No. 2024-002 entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, UPDATING THE OUTSIDE AGENCY FUNDING PROGRAM GUIDELINES.” Motion Carried (5 to 0) 13.g AUTHORIZE PURCHASE OF PARAMEDIC UNIT FOR NEW FIRE STATION 102 Motion by: Mayor Pro Tem Harnik Seconded by: Councilmember Nestande 1. Authorize the purchase of a new paramedic unit for the new Fire Station 102 in an amount not to exceed $303,449.02, pursuant to sections 3.30.160(I) and 3.30.160(J) of the Palm Desert Municipal Code. 2. Authorize Directory of Finance to set aside a 20% contingency in the amount of $60,689.80. 3. Authorize the City Attorney to make any necessary non-monetary changes to the agreement. 4. Authorize the City Manager to execute all documents necessary to effectuate this action. Motion Carried (5 to 0) Page 36 of 1128 Palm Desert City Council Meeting Minutes January 25, 2024 5 13.h ACCEPTANCE OF A RESIGNATION FROM THE CIVIC ENGAGEMENT COMMITTEE Motion by: Mayor Pro Tem Harnik Seconded by: Councilmember Nestande With regret, accept the resignation of Scott Warmuth from the Civic Engagement Committee. Motion Carried (5 to 0) 13.i RECEIVE AND FILE THE ANNUAL LOW- AND MODERATE-INCOME HOUSING ASSET FUND REPORT RELATIVE TO SB 341 Motion by: Mayor Pro Tem Harnik Seconded by: Councilmember Nestande Receive and file the annual Low- and Moderate-Income Housing Asset Fund report relative to SB 341 for the 2022/2023 fiscal year. Motion Carried (5 to 0) 14. ACTION CALENDAR 14.a PALM DESERT REDISTRICTING 2023: ADOPT ORDINANCE NO. 1406 ESTABLISHING CITY COUNCIL ELECTION DISTRICT BOUNDARIES AND SCHEDULING ELECTIONS WITHIN THE DISTRICTS AND INTRODUCE ORDINANCE NO. 1407 ELIMINATING USE OF RANKED CHOICE VOTING City Clerk Mejia presented a staff report and responded to City Council inquiries. Motion by: Mayor Pro Tem Harnik Seconded by: Councilmember Trubee 1. Adopt Ordinance No. 1406 entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING SECTION 2.38.040 OF THE PALM DESERT MUNICIPAL CODE RELATED TO BY-DISTRICT ELECTIONS, DEFINING DISTRICT BOUNDARIES, AND SCHEDULING ELECTIONS WITHIN THE DISTRICTS.” 2. Introduce Ordinance No. 1407 entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, REPEALING SECTION 2.38.050 OF CHAPTER 2.38 (“GENERAL MUNICIPAL ELECTIONS”) OF TITLE 2 (“ADMINISTRATION AND PERSONNEL”) OF THE PALM DESERT MUNICIPAL CODE TO IN ORDER TO ELIMINATE RANKED CHOICE VOTING FOR THE ELECTION OF MEMBERS OF THE CITY COUNCIL.” Motion Carried (5 to 0) Page 37 of 1128 Palm Desert City Council Meeting Minutes January 25, 2024 6 14.b INTRODUCTION OF ORDINANCE NO. 1408 ADDING CHAPTER 2.74 TO TITLE 2 OF THE PALM DESERT MUNICIPAL CODE, ESTABLISHING A MUNICIPAL LIBRARY FOR THE CITY, AND MAKING A FINDING OF EXEMPTION UNDER CEQA Director of Library Services Shaffer presented a staff report and responded to City Council inquiries. Motion by: Councilmember Trubee Seconded by: Mayor Pro Tem Harnik Introduce Ordinance No. 1408 entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ADDING CHAPTER 2.74 TO TITLE 2 OF THE PALM DESERT MUNICIPAL CODE, ESTABLISHING A MUNICIPAL LIBRARY FOR THE CITY, AND MAKING A FINDING OF EXEMPTION UNDER CEQA.” Motion Carried (5 to 0) 14.c AUTHORIZE THE CITY MANAGER TO EXECUTE ANY AND ALL DOCUMENTS NECESSARY FOR THE SALE OF 45-656 MOUNTAIN VIEW AVENUE, PALM DESERT Mayor Pro Tem Harnik recused herself due to proximity to her home and left the Council Chamber. Management Analyst Glickman presented a staff report and responded to City Council inquiries. Motion by: Councilmember Trubee Seconded by: Councilmember Nestande Authorize the City Manager to execute any and all documents necessary for the sale of 45-656 Mountain View Avenue, Palm Desert. RECUSED (1): Mayor Pro Tem Harnik Motion Carried (4 to 0) Mayor Pro Tem Harnik returned to the Council Chamber. Page 38 of 1128 Palm Desert City Council Meeting Minutes January 25, 2024 7 15. PUBLIC HEARINGS 15.a APPROVE THE SECOND AMENDMENT TO DEVELOPMENT AGREEMENT 98-1 BETWEEN THE CITY OF PALM DESERT AND MARRIOTT OWNERSHIP RESORTS, INC. Mayor Quintanilla opened the public hearing. Economic Development Director Ceja narrated a PowerPoint presentation and responded to City Council inquiries. Mayor Quintanilla closed the public hearing, there being no member of the public wishing to speak. Motion by: Councilmember Kelly Seconded by: Councilmember Nestande 1. Adopt Resolution No. 2024-003 entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE SECOND AMENDMENT TO THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF PALM DESERT AND MARRIOTT OWNERSHIP RESORTS, INC., CASE NO. DA 98-1, AMENDMENT NO. 2.” 2. Approve the Second Amendment to the Development Agreement (DA 98- 1) between the City of Palm Desert and Marriott Ownership Resorts, Inc. 3. Authorize the City Manager to execute the Second Amendment to the Development Agreement. 4. Authorize the City Attorney to make necessary, non-monetary changes to the Second Amendment to the Development Agreement. 5. Authorize adjustment of $1,600,000 to Timeshare Mitigation Revenue Account Number 1100000-3122900. Motion Carried (5 to 0) 16. INFORMATION ITEMS None. Page 39 of 1128 Palm Desert City Council Meeting Minutes January 25, 2024 8 17. ADJOURNMENT The City Council adjourned at 4:45 p.m. Respectfully submitted, _________________________ Níamh M. Ortega Assistant City Clerk/Assistant Secretary _________________________ Anthony J. Mejia, MMC City Clerk/Secretary Page 40 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 11/29/2023 - 11/29/2023 City of Palm Desert Account Number 11/29/202312215955 P E R SWR Late Reporting Fee41115001104150 100000017329066 200.00 Examined and Approved Total For Bank ID - WR 200.00City Manager Examined and Approved Mayor or Mayor Pro-Tem Audited and Found Correct Director of Finance 11/29/2023Report Date 1Page City and Housing DocuSign Envelope ID: 7AD6E24A-23A5-45D3-AAC0-D1D0221597B2 Page 41 of 1128 Page 42 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 1/19/2024 - 1/19/2024 City of Palm Desert Account Number 01/19/202400001109 AETNA RESOURCES FOR LIVINGW1 Employee Assistance SP2343090001104154 E0299484 173.75 01/19/202400001109 AETNA RESOURCES FOR LIVINGW1 Employee Assistance Workshop43090001104154 E0299483 650.00 01/19/202400001109 AETNA RESOURCES FOR LIVINGW1 Employee Assistance OC2343090001104154 E0300758 173.75 01/19/202400001110 Amazon Capital Services Inc.W1 COVID-19 Antigen Tests42190001104154 1LPL-WWRD-WNJQ 404.00 01/19/202400001110 Amazon Capital Services Inc.W1 COPS-Office Supplies/Misc Item43060011104211 16XDCCPCDVKW 2,318.83 01/19/202400001111 AMS CONNECTW1 R/M ALARM - CORPYARD43310001104330 4155809 154.00 01/19/202400001111 AMS CONNECTW1 ALARM SERVICES - CORP YARD43310001104330 4244143 283.00 01/19/202400001111 AMS CONNECTW1 R/M ALARM - HISTORICAL SOC43310001104340 4250541 314.55 01/19/202400001112 BUREAU VERITAS TECHNICALW1 INVENTORY / ASSET MGMT43090004504164 INV00033239 39,088.93 01/19/202400001113 C V A GW1 DECEMBER 2023 TUMF22825006100000 PDTUMF122023 105,594.25 01/19/202400001114 CALIFORNIA JPIAW1 LITIGATION43016001104121 EMAIL010924 10,000.00 01/19/202400001115 CDW LLCW1 FY2324 Scanner Replacement44040005304190 NW10678 1,097.80 01/19/202400001115 CDW LLCW1 FY2324 Mouse Replacement44040005304190 NW21723 53.11 01/19/202400001115 CDW LLCW1 FY2324 Ink Replacement44040005304190 NW24599 162.08 01/19/202400001115 CDW LLCW1 FY2324 HDMI,HD,USB Replacement44040005304190 NW40390 190.85 01/19/202400001115 CDW LLCW1 FY2324 Computer Replacement44040005304190 NX83447 6,602.53 01/19/202400001115 CDW LLCW1 FY2324 USB Replacement44040005304190 NZ40159 156.13 01/19/202400001115 CDW LLCW1 FY2324 Monitor Replacement44040005304190 NT08330 497.03 01/19/202400001115 CDW LLCW1 FY2324 Kensington Replacement44040005304190 NN66868 360.79 01/19/202400001116 CENTRAL SQUARE TECHNOLOGIES LLCW1 Training hours CS Dec2343090001104190 399899 1,080.00 01/19/202400001116 CENTRAL SQUARE TECHNOLOGIES LLCW1 Software change& update DEC2343360001104190 399900 1,215.00 01/19/202400001116 CENTRAL SQUARE TECHNOLOGIES LLCW1 Public Admin - Consulting Serv43360001104190 399930 630.00 01/19/202400001117 CHARTER COMMUNICATIONSW1 JN23 73710 FW Parkview43696015104195 229561901010124 142.97 01/19/202400001118 COACHELLA VALLEY CONSERVATIONW1 DECEMBER 2023 MSHCP22808006100000 PDMSHCP122023 34,635.75 01/19/202400001118 COACHELLA VALLEY CONSERVATIONW1 LESS1% ADMIN FEE22808006100000 PDMSHCP122023 -346.36 01/19/202400001119 DESERT PUBLICATIONS INCW1 DIGITAL PROGRAMMATIC MARKETING43222001104417 993650 5,000.00 01/19/202400001120 ECONOLITE CONTROL PRODUCTSW1 R/M TRAFFIC SIGNALS43325001104250 INV220075 139.81 01/19/2024Report Date 1Page City and Housing DocuSign Envelope ID: 416FD42D-2D1F-493D-B309-03423E4DB2C3 Page 43 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 1/19/2024 - 1/19/2024 City of Palm Desert Account Number 01/19/202400001121 ECS IMAGING INCW1 10 ADDITIONAL LASERFICHE LICEN43620011104190 18393 11,109.00 01/19/202400001122 ENTERPRISE FM TRUSTW1 234LD4 MAINTENANCE43340001104331 FBN4930648 128.25 01/19/202400001122 ENTERPRISE FM TRUSTW1 22V3PJ MAINTENANCE43340001104331 FBN4930648 103.83 01/19/202400001122 ENTERPRISE FM TRUSTW1 22V3QC MAINTENANCE43340001104331 FBN4930648 102.20 01/19/202400001122 ENTERPRISE FM TRUSTW1 22V3RD MAINTENANCE43340001104331 FBN4930648 99.97 01/19/202400001122 ENTERPRISE FM TRUSTW1 22V458 MAINTENANCE43340001104331 FBN4930648 103.83 01/19/202400001122 ENTERPRISE FM TRUSTW1 22V3PN MAINTENANCE43340001104331 FBN4930648 103.83 01/19/202400001122 ENTERPRISE FM TRUSTW1 22V3S3 MAINTENANCE43340001104331 FBN4930648 113.08 01/19/202400001122 ENTERPRISE FM TRUSTW1 22V3PC MAINTENANCE43340001104331 FBN4930648 103.83 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MTQF MAINTENANCE43340001104331 FBN4930648 130.74 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MG3C MAINTENANCE43340001104331 FBN4930648 101.96 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MG3H MAINTENANCE43340001104331 FBN4930648 101.96 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MG55 MAINTENANCE43340001104331 FBN4930648 99.97 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MG58 MAINTENANCE43340001104331 FBN4930648 86.67 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MTQG MAINTENANCE43340001104331 FBN4930648 128.93 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MG42 MAINTENANCE43340001104331 FBN4930648 99.97 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MG5R MAINTENANCE43340001104331 FBN4930648 103.83 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MG5W MAINTENANCE43340001104331 FBN4930648 103.83 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MTQB MAINTENANCE43340001104331 FBN4930648 139.15 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MTQD MAINTENANCE43340001104331 FBN4930648 133.73 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MG34 MAINTENANCE43340001104331 FBN4930648 103.83 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MG4H MAINTENANCE43340001104331 FBN4930648 99.97 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MG3S MAINTENANCE43340001104331 FBN4930648 86.67 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MG5X MAINTENANCE43340001104331 FBN4930648 103.83 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MG63 MAINTENANCE43340001104331 FBN4930648 95.00 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MP7V MAINTENANCE43340001104331 FBN4930648 61.00 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MP7V ADDITIONAL MAINTENANCE43340001104331 FBN4930648 91.16 01/19/2024Report Date 2Page City and Housing DocuSign Envelope ID: 416FD42D-2D1F-493D-B309-03423E4DB2C3 Page 44 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 1/19/2024 - 1/19/2024 City of Palm Desert Account Number 01/19/202400001122 ENTERPRISE FM TRUSTW1 22V3QW MAINTENANCE43340001104331 FBN4930648 103.83 01/19/202400001122 ENTERPRISE FM TRUSTW1 22V3MJ MAINTENANCE43340001104331 FBN4930648 108.42 01/19/202400001122 ENTERPRISE FM TRUSTW1 22V3NF MAINTENANCE43340001104331 FBN4930648 101.83 01/19/202400001122 ENTERPRISE FM TRUSTW1 22V3P3 MAINTENANCE43340001104331 FBN4930648 103.83 01/19/202400001122 ENTERPRISE FM TRUSTW1 22V3P5 MAINTENANCE43340001104331 FBN4930648 103.83 01/19/202400001122 ENTERPRISE FM TRUSTW1 22V3P8 MAINTENANCE43340001104331 FBN4930648 103.83 01/19/202400001122 ENTERPRISE FM TRUSTW1 234LD4 LEASE43440005304331 FBN4930648 910.24 01/19/202400001122 ENTERPRISE FM TRUSTW1 22V3PJ LEASE43440005304331 FBN4930648 652.46 01/19/202400001122 ENTERPRISE FM TRUSTW1 22V3QC LEASE43440005304331 FBN4930648 659.59 01/19/202400001122 ENTERPRISE FM TRUSTW1 22V3RD LEASE43440005304331 FBN4930648 388.44 01/19/202400001122 ENTERPRISE FM TRUSTW1 22V458 LEASE43440005304331 FBN4930648 638.93 01/19/202400001122 ENTERPRISE FM TRUSTW1 22V3PN LEASE43440005304331 FBN4930648 665.88 01/19/202400001122 ENTERPRISE FM TRUSTW1 22V3S3 LEASE43440005304331 FBN4930648 652.46 01/19/202400001122 ENTERPRISE FM TRUSTW1 22V3PC LEASE43440005304331 FBN4930648 652.46 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MTQF LEASE43440005304331 FBN4930648 26.94 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MG3C LEASE43440005304331 FBN4930648 26.94 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MG3H LEASE43440005304331 FBN4930648 26.94 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MG55 LEASE43440005304331 FBN4930648 26.94 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MG58 LEASE43440005304331 FBN4930648 26.94 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MTQG LEASE43440005304331 FBN4930648 26.94 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MG42 LEASE43440005304331 FBN4930648 26.94 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MG5R LEASE43440005304331 FBN4930648 502.93 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MG5W LEASE43440005304331 FBN4930648 503.85 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MTQB LEASE43440005304331 FBN4930648 65.07 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MTQD LEASE43440005304331 FBN4930648 26.94 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MG34 LEASE43440005304331 FBN4930648 26.94 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MG4H LEASE43440005304331 FBN4930648 26.94 01/19/2024Report Date 3Page City and Housing DocuSign Envelope ID: 416FD42D-2D1F-493D-B309-03423E4DB2C3 Page 45 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 1/19/2024 - 1/19/2024 City of Palm Desert Account Number 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MG3S LEASE43440005304331 FBN4930648 382.52 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MG5X LEASE43440005304331 FBN4930648 503.38 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MG63 LEASE43440005304331 FBN4930648 484.25 01/19/202400001122 ENTERPRISE FM TRUSTW1 22MP7V LEASE43440005304331 FBN4930648 490.60 01/19/202400001122 ENTERPRISE FM TRUSTW1 22V3QW LEASE43440005304331 FBN4930648 587.93 01/19/202400001122 ENTERPRISE FM TRUSTW1 22V3MJ LEASE43440005304331 FBN4930648 618.74 01/19/202400001122 ENTERPRISE FM TRUSTW1 22V3NF LEASE43440005304331 FBN4930648 615.78 01/19/202400001122 ENTERPRISE FM TRUSTW1 22V3P3 LEASE43440005304331 FBN4930648 652.46 01/19/202400001122 ENTERPRISE FM TRUSTW1 22V3P5 LEASE43440005304331 FBN4930648 652.46 01/19/202400001122 ENTERPRISE FM TRUSTW1 22V3P8 LEASE43440005304331 FBN4930648 652.46 01/19/202400001123 FG CREATIVE INCW1 Monthly Account Management43090002424549 10201 600.00 01/19/202400001123 FG CREATIVE INCW1 Website Updates & Troubleshoot43090002424549 10201 300.00 01/19/202400001124 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 PRESIDENTS PLAZA I - II43320002774373 6650 1,280.00 01/19/202400001125 HOUSE OF ENERGYW1 Wellfest43062011104800 WELLFEST 500.00 01/19/202400001126 HR GREEN PACIFIC INCW1 TRAFFIC SIGN MODS / HARDWARE50009062134250 170744 550.00 01/19/202400001127 IDEA PEDDLER LLCW1 Creative Services & Branding43090001104417 2345 25,000.00 01/19/202400001127 IDEA PEDDLER LLCW1 Ad Campaign Creative Refresh43090001104417 2349 25,000.00 01/19/202400001127 IDEA PEDDLER LLCW1 Public Relations 7/12 JAN2443090001104417 2356 2,916.66 01/19/202400001127 IDEA PEDDLER LLCW1 Media Management 7/12 JAN2443090001104417 2355 4,416.66 01/19/202400001127 IDEA PEDDLER LLCW1 Social Media 7/12 JAN2443090001104417 2357 2,416.66 01/19/202400001127 IDEA PEDDLER LLCW1 Strategy & Acct Mgm 7/12 JAN2443090001104417 2358 4,416.66 01/19/202400001128 K2 AUDIO LLCW1 On Site Test Reimburse43090001104190 650000211 3,283.01 01/19/202400001128 K2 AUDIO LLCW1 Addtl. programming for council44001004004161 650000211 4,400.00 01/19/202400001128 K2 AUDIO LLCW1 Extra Commissioning Trip44001004004161 650000211 4,968.00 01/19/202400001129 MARIPOSA LANDSCAPES INCW1 DC23 LMA 1 MONTHLY LANDSCAPE43370011104614 105704 41,125.38 01/19/202400001130 Mosaic Public Partners LLCW1 Advertising Expense43090001104154 1362 2,110.00 01/19/202400001130 Mosaic Public Partners LLCW1 Brochure and Background Check43090001104154 1404 269.80 01/19/2024Report Date 4Page City and Housing DocuSign Envelope ID: 416FD42D-2D1F-493D-B309-03423E4DB2C3 Page 46 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 1/19/2024 - 1/19/2024 City of Palm Desert Account Number 01/19/202400001131 NEOGOVW1 23/24 ONBOARDING/PERFORM SUBCR43620001104190 INV-26842 14,098.32 01/19/202400001132 PALM DESERT CHAMBER OF COMMERCEW1 Bus Breakfast KQ, GN 1.09.2443125001104110 74859 60.00 01/19/202400001133 PFM ASSET MANAGEMENT LLCW1 Investment Mgmt NOV2343090001104159 14022672 3,690.78 01/19/202400001134 QOVO SOLUTIONS INC.W1 CAMERA REPLACEMENT-PDAC43090002424549 QOVO 798.47 01/19/202400001135 STAPLES BUSINESS ADVANTAGEW1 Supplies for new Employees42110001104150 3556540988 47.54 01/19/202400001135 STAPLES BUSINESS ADVANTAGEW1 Date Stamp for D.Olivares42110001104150 3556540986 17.23 01/19/202400001135 STAPLES BUSINESS ADVANTAGEW1 Supplies for Supply Room42110001104159 3556540988 63.30 01/19/202400001135 STAPLES BUSINESS ADVANTAGEW1 Paper for Supply Room42110001104159 3556540986 99.95 01/19/202400001135 STAPLES BUSINESS ADVANTAGEW1 OFFICE SUPPLIES - CITY HALL42110001104300 3550050071 6.79 01/19/202400001135 STAPLES BUSINESS ADVANTAGEW1 OFFICE SUPPLIES - CITY HALL42110001104300 3550050072 36.64 01/19/202400001135 STAPLES BUSINESS ADVANTAGEW1 CORPYARD OFFICE SUPPLIES42190001104330 3555389397 182.22 01/19/202400001135 STAPLES BUSINESS ADVANTAGEW1 Cert. Hlrd, Lam. Pches, Agenda42110001104111 3554946287 92.00 01/19/202400001135 STAPLES BUSINESS ADVANTAGEW1 Index LGL Tabs42110001104111 3554946286 60.51 01/19/202400001135 STAPLES BUSINESS ADVANTAGEW1 COPS-Water43060011104211 3554946285 216.00 01/19/202400001135 STAPLES BUSINESS ADVANTAGEW1 DC23 Office Supplies HR42110001104154 3555374128 189.13 01/19/202400001135 STAPLES BUSINESS ADVANTAGEW1 Office Supplies - PL42110001104470 3554981177 46.24 01/19/202400001135 STAPLES BUSINESS ADVANTAGEW1 Office Supplies - PC/PL42110001104470 3552365215 39.52 01/19/202400001135 STAPLES BUSINESS ADVANTAGEW1 Credit Memo for INV#355236521542110001104470 3553216763 -32.50 01/19/202400001135 STAPLES BUSINESS ADVANTAGEW1 Office Supplies - PC42110001104470 3554946338 226.51 01/19/202400001136 THE ALTUM GROUPW1 DW "PARCEL A" PARKING LOT48092004414195 9150 709.50 01/19/202400001137 THE JOSLYN CENTERW1 FY 23/24 Joslyn Center Quarter43893001104800 13178 61,510.23 01/19/202400001138 VINTAGE ASSOCIATESW1 LMA 17 EXTRA WORK - CIVIC PARK43320011104610 231231 5,167.82 01/19/202400001139 VISUAL EDGE IT INCW1 Usage &supplies 2TX101725 DC2343420001104190 24AR1406149 149.82 01/19/202400001139 VISUAL EDGE IT INCW1 Usage and supplies 11/23-12/2343420001104190 24AR1406209 1,389.55 01/19/202400001139 VISUAL EDGE IT INCW1 Usage &supplies 3TX403772 DC2343420001104190 24AR1406210 112.26 01/19/202400001140 VITAC CORPORATIONW1 Live Captioning Services for C43620011104190 INVVIT120519 472.50 01/19/202400001141 WEX HEALTH INCW1 DC23 COBRA Monthly43090001104154 0001870845-IN 85.00 01/19/2024Report Date 5Page City and Housing DocuSign Envelope ID: 416FD42D-2D1F-493D-B309-03423E4DB2C3 Page 47 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 1/19/2024 - 1/19/2024 City of Palm Desert Account Number 01/19/202400001142 WINGED SOLUTIONS INCW1 DC23 CC PARK BIRD MITIGATION43320011104610 WS013123CP 2,294.00 01/19/202402001779 ACCURATE FIRST AID SERVICESW1 FIRST AID SUPPLIES - CITY HALL42190001104340 C-2263 133.31 01/19/202402001780 ALLEY, JEFFREY LYNNW1 COPS Donuts -1.9.2443060011104211 ALLEY-1924 46.67 01/19/202402001781 ANDERSON COMMUNICATION INCW1 JAN24 RADIO REPEATER SERVICE43650001104310 20186B 250.00 01/19/202402001782 BECK OIL INCW1 SUPPLY OF GAS AND DIESEL FUEL42170001104331 86001 6,727.97 01/19/202402001782 BECK OIL INCW1 SUPPLY OF GAS AND DIESEL FUEL42170001104331 94736 3,684.82 01/19/202402001783 BMW MOTORCYCLE OF RIVERSIDEW1 FY 23/24 Maintenance and repai43340001104210 6034997 1,402.20 01/19/202402001784 BOUNDS, JAMESW1 PRDM CSMFO 2024 1/29-2/2/2411501001100000 ADV PRDM 1/29/24 333.00 01/19/202402001784 BOUNDS, JAMESW1 TRANS CSMFO 2024 1/29-2/2/2411501001100000 ADV TRANS 1/29 143.38 01/19/202402001784 BOUNDS, JAMESW1 PARKING CSMFO 2024 1/29-2/2/2411501001100000 ADV PARKING 1/29 100.00 01/19/202402001784 BOUNDS, JAMESW1 LDG CSMFO 2024 1/29-2/2/2411501001100000 ADV LDG 1/29/24 926.64 01/19/202402001785 BRIAN K. STEMMER CONSTRUCTIONW1 R/M PERMIT CENTER DEV DEPT43310001104340 5890 450.00 01/19/202402001786 CANNONE, RICHARDW1 APA Mbrshp Dues - R.Cannone43630001104470 104182-202310 813.00 01/19/202402001787 CASH, PETTYW1 CC Snacks - 10.26.2343125001104110 10262023 52.92 01/19/202402001787 CASH, PETTYW1 CC Snacks- 11.16.202343125001104110 11162023 49.98 01/19/202402001787 CASH, PETTYW1 CC Snacks-12.14.202343125001104110 12142023 62.91 01/19/202402001787 CASH, PETTYW1 CC Snacks- 1.11.202443125001104110 1102024 64.09 01/19/202402001787 CASH, PETTYW1 Dir. Lib. Serv. Business Lunch43125002524662 10242023 63.00 01/19/202402001787 CASH, PETTYW1 Dir. Lib. Serv. Parking43125002524662 SHAFFER-12142023 4.50 01/19/202402001788 CHARTER COMMUNICATIONSW1 JN24 City Hall Internet43650001104190 0036098010124 105.64 01/19/202402001788 CHARTER COMMUNICATIONSW1 DEC23 Internet Services43650001104190 0345093121623 534.00 01/19/202402001788 CHARTER COMMUNICATIONSW1 DEC23 Corp Yard Internet43650001104190 1093262120723 82.40 01/19/202402001789 CHAVEZ, VERONICAW1 LDG CSMFO 2024 1/30-2/2/2411501001100000 ADV LDG 1/30/24 769.86 01/19/202402001789 CHAVEZ, VERONICAW1 PARKING CSMFO 2024 1/30-2/2/2411501001100000 ADV PARKING 1/30 75.00 01/19/202402001789 CHAVEZ, VERONICAW1 TRANS CSMFO 2024 1/30-2/2/2411501001100000 ADV TRANS 1/30 52.26 01/19/202402001789 CHAVEZ, VERONICAW1 PRDM CSMFO 2024 1/30-2/2/2411501001100000 ADV PRDM 1/29/24 259.00 01/19/202402001790 COACHELLA VALLEY WATER DIST.W1 DEC23 26 CONSTRUCTION43510001104310 306823768022DC23 156.82 01/19/2024Report Date 6Page City and Housing DocuSign Envelope ID: 416FD42D-2D1F-493D-B309-03423E4DB2C3 Page 48 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 1/19/2024 - 1/19/2024 City of Palm Desert Account Number 01/19/202402001790 COACHELLA VALLEY WATER DIST.W1 DEC23 TOWN CENTER WAY43510001104310 307113813150DC23 25.41 01/19/202402001790 COACHELLA VALLEY WATER DIST.W1 DEC23 68 CONTRUCTION43510001104330 306749767878DC23 298.54 01/19/202402001790 COACHELLA VALLEY WATER DIST.W1 248 RAC WELL RMT BY LAKE43510001104610 332429853174DC23 1,372.57 01/19/202402001791 DAVIS, LORIW1 Poet Laureate for City events43092004364650 #2 875.00 01/19/202402001792 DESERT SUN, THEW1 VS Subscription 12/23-12/2443620001104419 DS0579482 12/23 510.49 01/19/202402001793 DR HYDRAULICS INCW1 ADVANTAGE LIFT SERVICE - CORP43310001104330 2958 1,470.04 01/19/202402001793 DR HYDRAULICS INCW1 ADVANTAGE LIFT SERVICE - CORP43310001104330 2957 592.44 01/19/202402001794 EARTH SYSTEMSW1 TASK 1 - FW REHAB TESTING43320002114311 844049 1,464.00 01/19/202402001795 ENDURA STEEL INCW1 STREET MAINT SUPPLIES42190001104310 120810 127.39 01/19/202402001796 ENGLAND THIMS AND MILLER INCW1 CARTEGRAPH TRAINING43090001104190 210681 11,375.00 01/19/202402001797 FIESTA FORDW1 R/M VEH #012 CITY OWNED43340001104331 552404 155.21 01/19/202402001797 FIESTA FORDW1 R/M VEH #049 CITY OWNED43340001104331 552431 148.88 01/19/202402001798 FIND FOOD BANKW1 Food recovery per SB 138343090002364195 374650E6 625.00 01/19/202402001798 FIND FOOD BANKW1 Food recovery per SB 138343090002364195 374650E6 1,250.00 01/19/202402001799 FRONTIER COMMUNICATIONS INCW1 D/U CIRCUIT FRED WARING43650001104159 7605686932-1223 60.78 01/19/202402001799 FRONTIER COMMUNICATIONS INCW1 PHONE SVC43060011104211 7608629848-1223 145.74 01/19/202402001799 FRONTIER COMMUNICATIONS INCW1 TRAFFIC SIGNAL LINE SVC43650001104250 7603459146-1223 60.78 01/19/202402001799 FRONTIER COMMUNICATIONS INCW1 PCC PHONE SRV43650001104344 7605682560-1223 149.07 01/19/202402001799 FRONTIER COMMUNICATIONS INCW1 VALLEY CRIMESTOPPERS HOTLINE43914002294210 7603417867-1223 182.70 01/19/202402001799 FRONTIER COMMUNICATIONS INCW1 EP PHONE SVC43695002714491 7606749012-1223 126.70 01/19/202402001799 FRONTIER COMMUNICATIONS INCW1 PARKVIEW BLDG ALARM SRV43696015104195 7603468393-1223 162.33 01/19/202402001799 FRONTIER COMMUNICATIONS INCW1 PARKVIEW BLDG PHONE SRV43696015104195 7606741960-1223 109.13 01/19/202402001799 FRONTIER COMMUNICATIONS INCW1 PARKVIEW BLDG FIRE ALARM43696015104195 7607791904-1223 99.76 01/19/202402001799 FRONTIER COMMUNICATIONS INCW1 PARKVIEW BLDG ALARM SRV43696015104195 7608361142-1223 106.49 01/19/202402001799 FRONTIER COMMUNICATIONS INCW1 STATE BLDG INTERNET SRV43696025104195 3101746165-1223 55.98 01/19/202402001799 FRONTIER COMMUNICATIONS INCW1 HENDERSON BLDG PHONE SRV43698005104195 7607766715-1223 263.83 01/19/202402001800 GLS USW1 Falkenberg/Gilliam Assoc.43660001104150 5203585 7.70 01/19/2024Report Date 7Page City and Housing DocuSign Envelope ID: 416FD42D-2D1F-493D-B309-03423E4DB2C3 Page 49 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 1/19/2024 - 1/19/2024 City of Palm Desert Account Number 01/19/202402001801 GRIFFITHS FENCEW1 FENCE REPAIR-HOMME ADAMS PARK43325011104611 3734 1,150.00 01/19/202402001802 IN-SITE LANDSCAPEW1 DESIGN / ENG SRVS - PALMA44001002204649 1342 6,825.00 01/19/202402001803 International AssociationW1 E. Castellano BW Course43120001104111 200045191 750.00 01/19/202402001804 J.L. ENDICOTT INCW1 Nameplates 12.27.2342190001104154 10205 41.61 01/19/202402001804 J.L. ENDICOTT INCW1 Name plates 12.13.2342190001104154 10194 206.64 01/19/202402001805 JOHN KALISKI ARCHITECTS INCW1 PROFESSIONAL SERVICES TO PREPA43090001104470 6697 15,311.59 01/19/202402001806 JTB SUPPLY COMPANY INC.W1 R/M TRAFFIC SIGNALS43325001104250 112834 912.87 01/19/202402001806 JTB SUPPLY COMPANY INC.W1 TRAFFIC EQUIPMENT SUPPLIES43325001104250 112832 1,953.74 01/19/202402001806 JTB SUPPLY COMPANY INC.W1 TRAFFIC EQUIPMENT SUPPLIES43325001104250 112833 428.00 01/19/202402001807 KARTAL CORPORATION, THEW1 CITY FLEET WASH SERVICES.43340001104331 020124-2 75.00 01/19/202402001808 LA PRENSA HISPANAW1 Redistricting Hearing Notice43090001104114 891 675.00 01/19/202402001809 LEAGUE OF CALIFORNIA CITIESW1 LOCC City Membership 202443630001104159 INV-11992-B1W2H8 20,135.00 01/19/202402001810 LOWE'S HOME CENTERS INC.W1 STREET MAINT SUPPLIES42190001104310 982126-122223 296.62 01/19/202402001810 LOWE'S HOME CENTERS INC.W1 STREET MAINT SUPPLIES42190001104310 982501-122223 78.83 01/19/202402001810 LOWE'S HOME CENTERS INC.W1 STREET MAINT SUPPLIES42190001104310 972872-121923 607.05 01/19/202402001811 PAINTERS WAREHOUSE OFW1 GRAFFITI REMOVAL SUPPLIES43915021104310 2312-205145 32.76 01/19/202402001812 PAINTERS WAREHOUSE OFW1 GRAFFITI REMOVAL SUPPLIES43915021104310 2312-205084 98.66 01/19/202402001813 PALM DESERT ACE HARDWAREW1 STREET MAINT SUPPLIES42190001104310 243907 39.73 01/19/202402001814 PALM DESERT RESIDENCE INNW1 Emergency lodging42191001104159 56AA200013000 2,862.81 01/19/202402001815 PALMER ELECTRICW1 ELECT REPAIRS - CIVIC CENTER43321001104610 5023 638.13 01/19/202402001816 PATTON DOOR & GATEW1 R/M OVERHEAD DOORS - FS 7143310002304220 93414 350.00 01/19/202402001816 PATTON DOOR & GATEW1 R/M OVERHEAD DOORS - FS 7143310002304220 93108 255.39 01/19/202402001817 PROFORMA SOCALW1 Business Cards 12.13.2342190001104154 BH49004103A 90.32 01/19/202402001818 PROPER SOLUTIONS INC.W1 City Clerk Temp. Svcs PE 01/0543004001104111 15491 840.72 01/19/202402001819 QUADIENT LEASING USA INCW1 11.1.23-1.31.24 Lease 107943420001104159 Q1130184 466.02 01/19/202402001820 QUINN COMPANYW1 RENTAL GENERATOR - FS 7143310002304220 E2828609 591.12 01/19/202402001820 QUINN COMPANYW1 RENTAL GENERATOR - FS 7143310002304220 E2828609 3,560.77 01/19/2024Report Date 8Page City and Housing DocuSign Envelope ID: 416FD42D-2D1F-493D-B309-03423E4DB2C3 Page 50 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 1/19/2024 - 1/19/2024 City of Palm Desert Account Number 01/19/202402001820 QUINN COMPANYW1 RENTAL GENERATOR - FS 7143310002304220 E2828610 4,151.89 01/19/202402001820 QUINN COMPANYW1 RENTAL GENERATOR - FS 7143310002304220 E2828611 4,151.89 01/19/202402001820 QUINN COMPANYW1 RENTAL GENERATOR - FS 7143310002304220 E2828612 4,151.89 01/19/202402001821 RASIX COMPUTER CENTER INCW1 10 color ink, 10 blk ink42120001104190 ID110601 388.76 01/19/202402001821 RASIX COMPUTER CENTER INCW1 10 HP 65 Ink Cartridge42120001104190 ID110200 194.38 01/19/202402001822 RETAIL MARKETING SERVICESW1 Shopping Cart Rtrvl Srvs NV2343090001104422 190275 610.00 01/19/202402001823 RIVERSIDE UNIVERSITY HEALTHW1 Homeless Outreach Services for43921001104212 INVPD103123 8,372.24 01/19/202402001824 SITEONE LANDSCAPE SUPPLY LLCW1 IRRIG CONTROLLER KEY - LMA 143370011104614 136504612-001 37.11 01/19/202402001825 SKYLINE SAFETY AND SUPPLYW1 STREET MAINT SUPPLIES42190001104310 8071 448.33 01/19/202402001826 SO CAL GASW1 73510 FW City Hall43512001104340 20092710001-DC23 647.24 01/19/202402001827 SOUTHERN CALIFORNIA EDISONW1 44911 Cabrillo Avenue43514001104340 700471509061DC23 201.98 01/19/202402001828 SOUTHWEST BOULDER & STONEW1 LMA 16 HOMME ADAMS SANDSTONE R43320011104611 601377 2,990.08 01/19/202402001829 ST. FRANCIS ELECTRIC LLCW1 TRAFFIC SIGNAL PM / EMERG NV2343325001104250 20016868 2,325.00 01/19/202402001829 ST. FRANCIS ELECTRIC LLCW1 TRAFFIC SIGNAL PM / EMERG NV2343325001104250 20016869 673.50 01/19/202402001830 STERLING ADMINISTRATIONW1 DEC23 Admin Fees43090001104154 748993 160.00 01/19/202402001830 STERLING ADMINISTRATIONW1 NOV23 Admin Fees43090001104154 741762 165.00 01/19/202402001831 SUNBELT RENTALS INCW1 WATER PUMP RENTAL-GERALD FORD43430001104310 148678353-001 1,286.50 01/19/202402001832 SUNLINE TRANSIT AGENCYW1 DEC23 BUS SHELTER MAINT43320001104310 INV07434 6,413.76 01/19/202402001833 THE RETAIL COACH LLCW1 Contract Exec. - 1 Instllmnt43090001104430 5109 4,583.33 01/19/202402001834 TNV TOWINGW1 Sheriff Towing43042001104210 2516 325.00 01/19/202402001834 TNV TOWINGW1 T23013002-Sheriff Towing43042001104210 2518 100.00 01/19/202402001834 TNV TOWINGW1 T23033103-Sheriff Towing43042001104210 2520 100.00 01/19/202402001834 TNV TOWINGW1 T223420114-Sheriff Towing43042001104210 2521 100.00 01/19/202402001835 TOPS N BARRICADES INC.W1 LANDS INSP UNIFORM42140001104310 1103701 72.92 01/19/202402001835 TOPS N BARRICADES INC.W1 LANDSCAPE SAFETY GEAR42190001104610 135800 72.92 01/19/202402001835 TOPS N BARRICADES INC.W1 STREET MAINT SUPPLIES42190001104310 1101098 19.85 01/19/202402001835 TOPS N BARRICADES INC.W1 SAFETY UNIFORM GEAR42140001104310 1104184 526.35 01/19/2024Report Date 9Page City and Housing DocuSign Envelope ID: 416FD42D-2D1F-493D-B309-03423E4DB2C3 Page 51 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 1/19/2024 - 1/19/2024 City of Palm Desert Account Number 01/19/202402001835 TOPS N BARRICADES INC.W1 STREET MAINT SUPPLIES42190001104310 1104176 55.57 01/19/202402001835 TOPS N BARRICADES INC.W1 STREET MAINT SUPPLIES42190001104310 1104183 1,846.03 01/19/202402001835 TOPS N BARRICADES INC.W1 R/M VEH #047 CITY OWNED43340001104331 1104182 100.00 01/19/202402001835 TOPS N BARRICADES INC.W1 SAFETY JACKET42140001104310 1104297 100.05 01/19/202402001836 TPX COMMUNICATIONSW1 Internet/Phone Svc 12/23-01/2443650001104190 176486886-0 5,713.40 01/19/202402001837 ULINE INCW1 BULDING MATERIALS - CITY HALL43310001104340 170658855 397.07 01/19/202402001838 UNIFIRST CORPORATIONW1 INDUSTRIAL UNIFORM RENTAL42140001104310 2200078982 313.12 01/19/202402001838 UNIFIRST CORPORATIONW1 INDUSTRIAL UNIFORM RENTAL42140001104310 22000067984 281.28 01/19/202402001838 UNIFIRST CORPORATIONW1 INDUSTRIAL UNIFORM RENTAL42140001104310 2200083775 293.43 01/19/202402001839 VARIETY-THE CHILDREN'SW1 OA FY23/2443880001104800 OA FY23/24 2,500.00 01/19/202402001840 VASQUEZ, AILEENW1 Employee Rec Party Supplies42190001104154 AVASQUEZ 1.10.24 211.56 01/19/202402001841 WATERLINE TECHNOLOGIES INCW1 CHEMICALS - AQUATIC CENTER42111002424549 5660276 513.97 01/19/202402001841 WATERLINE TECHNOLOGIES INCW1 CHEMICALS - AQUATIC CENTER42111002424549 5661179 856.61 01/19/202402001841 WATERLINE TECHNOLOGIES INCW1 CHEMICALS - AQUATIC CENTER42111002424549 5662132 1,130.73 01/19/202402001841 WATERLINE TECHNOLOGIES INCW1 CHEMICALS - AQUATIC CENTER42111002424549 5663755 2,489.03 01/19/202402001841 WATERLINE TECHNOLOGIES INCW1 CHEMICALS - AQUATIC CENTER42111002424549 5663926 575.39 01/19/202402001841 WATERLINE TECHNOLOGIES INCW1 CHEMICALS - AQUATIC CENTER42111002424549 5664443 788.08 01/19/202402001841 WATERLINE TECHNOLOGIES INCW1 CHEMICALS - AQUATIC CENTER42111002424549 5665215 616.76 01/19/202402001841 WATERLINE TECHNOLOGIES INCW1 CHEMICALS - AQUATIC CENTER42111002424549 5665979 616.76 01/19/202402001842 WEST COAST ARBORISTS INCW1 MISC TREE WORK - CC PARK43320011104610 208760 2,056.80 01/19/202402001842 WEST COAST ARBORISTS INCW1 MISC TREE WORK - CC PARK43320011104610 209144 171.40 01/19/202402001842 WEST COAST ARBORISTS INCW1 MISC TREE WORK - PARKS43320011104611 208760 829.75 01/19/202402001842 WEST COAST ARBORISTS INCW1 MISC TREE WORK - MEDIANS43370011104614 208760 1,858.15 01/19/202402001842 WEST COAST ARBORISTS INCW1 August '23 Weather Event: Tree42191001104159 208829 35,950.00 01/19/202402001842 WEST COAST ARBORISTS INCW1 August '23 Weather Event: Tree42191001104159 209129 6,830.50 01/19/202402001842 WEST COAST ARBORISTS INCW1 HARDWOOD PRUNING - ENTRADA43921011104614 208762 476.60 01/19/202402001842 WEST COAST ARBORISTS INCW1 MISC TREE WORK - SONATA I43321002754683 208987 1,659.50 01/19/2024Report Date 10Page City and Housing DocuSign Envelope ID: 416FD42D-2D1F-493D-B309-03423E4DB2C3 Page 52 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 1/19/2024 - 1/19/2024 City of Palm Desert Account Number 01/19/202402001842 WEST COAST ARBORISTS INCW1 MISC TREE WORK - HAYSTACK43095002764374 209144 1,671.15 01/19/202402001843 WILLCORPW1 FREEDOM PARK STORM DAMAGE CLEA42191001104159 2176 96,593.62 01/19/202402001844 XEROX FINANCIAL SERVICESW1 12/29-1/28 Copier Lease43420001104190 5247555 2,851.42 01/19/202402001844 XEROX FINANCIAL SERVICESW1 Xerox 3TX403772 11-12/29 Lease43420001104190 5123577 191.98 01/19/202402001845 XPRESS GRAPHICSW1 Library Flier43610002524662 24-59011 207.98 01/19/202402001845 XPRESS GRAPHICSW1 ACFR 6/30/202243610001104150 23-58808 764.50 01/19/202402001845 XPRESS GRAPHICSW1 2023/24 Budget Book43610001104150 23-58809 990.11 01/19/202402001846 ZUMAR INDUSTRIES INC.W1 STREET MAINT SUPPLIES42190001104310 8620 177.93 Examined and Approved Total For Bank ID - W1 767,210.45City Manager Examined and Approved Mayor or Mayor Pro-Tem Audited and Found Correct Director of Finance 01/19/2024Report Date 11Page City and Housing DocuSign Envelope ID: 416FD42D-2D1F-493D-B309-03423E4DB2C3 Page 53 of 1128 Page 54 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 1/26/2024 - 1/26/2024 City of Palm Desert Account Number 01/26/202400001143 AVENU MUNISERVICES LLCW1 Sales Tax Measure Consulting43090001104159 INV06-018026 42,500.00 01/26/202400001144 CANVUS INCW1 7.75% SALES TAX20702002300000 INV-3923 -1,140.09 01/26/202400001144 CANVUS INCW1 RECYCLED BENCHES42190002364195 INV-3923 15,850.96 01/26/202400001144 CANVUS INCW1 7.75% SALES TAX42190002364195 INV-3923 1,140.09 01/26/202400001145 CDW LLCW1 FY2324 User Kit Replacement44040005304190 NZ00786 85.98 01/26/202400001146 CENTRAL SQUARE TECHNOLOGIES LLCW1 Consulting 6/4,6/10-6/11, 6/1743360001104190 385860 1,440.00 01/26/202400001146 CENTRAL SQUARE TECHNOLOGIES LLCW1 Consulting 11/5-11/11/2343620011104190 397736 1,260.00 01/26/202400001147 CITY EMPLOYEES ASSOCIATES LLCW1 PDEO DUES through 12/202321613001100000 PDEODEC23 1,590.00 01/26/202400001147 CITY EMPLOYEES ASSOCIATES LLCW1 PDEO DUES through 01/202421613001100000 PDEOJAN24 1,560.00 01/26/202400001148 FAMILY YMCA OF THE DESERTW1 OC23 AQUATIC CTR - SUPPLIES42190002424549 102023 992.12 01/26/202400001148 FAMILY YMCA OF THE DESERTW1 NV23 AQUATIC CTR - SUPPLIES42190002424549 112023 1,000.45 01/26/202400001148 FAMILY YMCA OF THE DESERTW1 DC23 AQUATIC CTR - SUPPLIES42190002424549 122023 257.30 01/26/202400001148 FAMILY YMCA OF THE DESERTW1 OC23CAQUATIC CR-OTHER EXPENSES43090002424549 102023 3,139.06 01/26/202400001148 FAMILY YMCA OF THE DESERTW1 NV23AQUATIC CTR-OTHER EXPENSES43090002424549 112023 7,637.91 01/26/202400001148 FAMILY YMCA OF THE DESERTW1 DC23AQUATIC CTR-OTHER EXPENSES43090002424549 122023 8,073.64 01/26/202400001148 FAMILY YMCA OF THE DESERTW1 OC23AQUATIC CTR-MANAGEMENT FEE43093002424549 102023 13,750.00 01/26/202400001148 FAMILY YMCA OF THE DESERTW1 NV23 AQUATIC CTR - MNGMNT FEE43093002424549 112023 13,750.00 01/26/202400001148 FAMILY YMCA OF THE DESERTW1 DC23AQUATIC CTR-MANAGEMENT FEE43093002424549 122023 13,750.00 01/26/202400001148 FAMILY YMCA OF THE DESERTW1 OC23 AQUATIC CTR - FOOD/MERCH48011002424549 102023 1,408.23 01/26/202400001148 FAMILY YMCA OF THE DESERTW1 DC23AQUATIC CTR - FOOD / MERCH48011002424549 122023 116.32 01/26/202400001148 FAMILY YMCA OF THE DESERTW1 OC23 AQUATIC CTR-CONTRACTED LA48021012424549 102023 113,643.03 01/26/202400001148 FAMILY YMCA OF THE DESERTW1 AQUATIC CTR - OCT23 REVENUES48021012424549 102023 -50,105.23 01/26/202400001148 FAMILY YMCA OF THE DESERTW1 NV23 AQUATIC CTR-CONTRACTED LA48021012424549 112023 96,337.71 01/26/202400001148 FAMILY YMCA OF THE DESERTW1 AQUATIC CTR - NOV23 REVENUES48021012424549 112023 -44,207.90 01/26/202400001148 FAMILY YMCA OF THE DESERTW1 DC23 AQUATIC CTR-CONTRACTED LA48021012424549 122023 93,252.24 01/26/202400001148 FAMILY YMCA OF THE DESERTW1 AQUATIC CTR - DEC23 REVENUES48021012424549 122023 -34,775.65 01/26/202400001149 FEDERAL EXPRESS CORP.W1 Housing-Shah43660008734195 8-348-70466 30.14 01/26/2024Report Date 1Page City and Housing DocuSign Envelope ID: 4EEDCD38-4055-42B5-9B0F-3BE1FB51158F Page 55 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 1/26/2024 - 1/26/2024 City of Palm Desert Account Number 01/26/202400001149 FEDERAL EXPRESS CORP.W1 Housing- Dep. of Housing43660008734195 8-363-13480 78.54 01/26/202400001150 FG CREATIVE INCW1 Monthly Website Updates; PSL43215002714491 10202 250.00 01/26/202400001150 FG CREATIVE INCW1 Print/Magazine: EP Catalogue43215002714491 10202 250.00 01/26/202400001150 FG CREATIVE INCW1 Print Advertising: PSL Print43215002714491 10202 4,395.00 01/26/202400001150 FG CREATIVE INCW1 PSL Digital Newsletters 2023:43215002714491 10202 1,800.00 01/26/202400001150 FG CREATIVE INCW1 Facebook Campaign: Special med43215002714491 10202 1,500.00 01/26/202400001150 FG CREATIVE INCW1 January Services - El Paseo43090001104430 10199 1,500.00 01/26/202400001150 FG CREATIVE INCW1 Monthly Agency Fee 2023-24; De43215002714491 10200 3,250.00 01/26/202400001150 FG CREATIVE INCW1 Print Ads/Graphic Design: DEC43215002714491 10200 1,000.00 01/26/202400001150 FG CREATIVE INCW1 Content Capture: for Brand Ass43215002714491 10200 1,500.00 01/26/202400001150 FG CREATIVE INCW1 Social Media Monthly Services:43215002714491 10200 2,200.00 01/26/202400001150 FG CREATIVE INCW1 Content Capture43215002714491 10200 1,500.00 01/26/202400001150 FG CREATIVE INCW1 PR/Influencers: Coordinate PR43215002714491 10200 750.00 01/26/202400001150 FG CREATIVE INCW1 Merchant Relations: monthly43215002714491 10200 1,100.00 01/26/202400001150 FG CREATIVE INCW1 First Fridays: Coordinate effo43215002714491 10200 750.00 01/26/202400001150 FG CREATIVE INCW1 First Fridays: Entertainement43215002714491 10200 1,200.00 01/26/202400001151 FIRSTCHOICE COFFEE SERVICEW1 COFFEE AND KITCHEN SUPPLIES42190001104340 733681 120.00 01/26/202400001151 FIRSTCHOICE COFFEE SERVICEW1 COFFEE AND KITCHEN SUPPLIES42190001104340 734260 1,976.53 01/26/202400001151 FIRSTCHOICE COFFEE SERVICEW1 COFFEE AND KITCHEN SUPPLIES42190001104340 734469 76.07 01/26/202400001151 FIRSTCHOICE COFFEE SERVICEW1 COFFEE / KITCHEN SPLYS - CITY42190001104340 734888 120.00 01/26/202400001152 HIGH TECH IRRIGATION INC.W1 IRRIGATION SUPPLIES - FREEDOM43320011104611 777815 28.67 01/26/202400001152 HIGH TECH IRRIGATION INC.W1 BUILDING MATERIALS - FS 3343310002304220 243877 13.21 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LANDSCAPE MAINT - OVERFLOW LOT43370011104614 6651 1,548.00 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 EXTRA WORK - OVERFLOW LOTS43370011104614 6664 360.00 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 EROSION REPAIR - SUNDANCE WEST43321002874681 6656 320.00 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 PALM DESERT CC43320002994374 6652 500.00 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LANDSCAPE MAINT - PERIMETER43320004414195 6651 9,100.00 01/26/2024Report Date 2Page City and Housing DocuSign Envelope ID: 4EEDCD38-4055-42B5-9B0F-3BE1FB51158F Page 56 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 1/26/2024 - 1/26/2024 City of Palm Desert Account Number 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 EXTRA WORK - DW PERIMETER43320004414195 6657 540.00 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 EXTRA WORK - DW PERIMETER43320004414195 6662 3,540.00 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 EXTRA WORK - DW PERIMETER43320004414195 6661 1,761.15 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 DESERT MIRAGE43320002734680 6652 516.65 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 PRIMEROSE II43320002734682 6652 325.00 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 DIAMONDBACK43320002754643 6652 112.50 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA MONTEREY MEADOWS43320002754680 6652 141.50 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 THE GLEN43320002754681 6652 291.50 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 HOVLEY ESTATES43320002754682 6652 145.50 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 SONATA I43320002754683 6652 339.50 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 SONATA II43320002754684 6652 466.50 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 HOVLEY COLLECTION43320002754685 6652 366.50 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 LA PALOMA I43320002754686 6652 154.00 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 LA PALOMA II43320002754687 6652 154.00 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 LA PALOMA III43320002754693 6652 137.50 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 SANPIPER COURT43320002754694 6652 166.50 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 SANPIPER COURT WEST43320002754695 6652 166.50 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 HOVLEY COURT WEST43320002754696 6652 235.00 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 PALM COURT43320002754697 6652 112.50 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 PRESIDENTS PLAZA 1 / II43320002774373 6652 2,245.00 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 VINEYARDS43320002784374 6652 225.00 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 WARING COURT43320002794374 6652 208.25 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 PALM GATE43320002804374 6652 125.00 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 THE GROVE43320002814374 6652 487.50 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 PRESIDENTS PLAZA III43320002824373 6652 526.60 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 PORTOLA PLACE43320002834374 6652 208.25 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 KAUFMAN N BROAD43320002854374 6652 958.25 01/26/2024Report Date 3Page City and Housing DocuSign Envelope ID: 4EEDCD38-4055-42B5-9B0F-3BE1FB51158F Page 57 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 1/26/2024 - 1/26/2024 City of Palm Desert Account Number 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 CANYON CREST43320002864374 6652 279.00 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 COLLEGE VIEW ESTATES II43320002874374 6652 300.00 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 THE BOULDERS43320002874680 6652 500.00 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 SUNDANCE WEST43320002874681 6652 270.50 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 PETUNIA I43320002874682 6652 350.00 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 SUNDANCE EAST43320002874683 6652 150.00 01/26/202400001153 HORIZON PROFESSIONAL LANDSCAPEW1 LMA 7 COLLEGE VIEW ESTATES I43320002874684 6652 270.50 01/26/202400001154 MARIPOSA LANDSCAPES INCW1 WHITE STONE LN CO1 MDR0000243710001104192 105178 1,712.00 01/26/202400001154 MARIPOSA LANDSCAPES INCW1 August '23 Weather Event: Medi42191001104159 105980 1,260.00 01/26/202400001154 MARIPOSA LANDSCAPES INCW1 EXTRA WORK - LMA 9 MEDIANS43370011104614 105981 2,884.00 01/26/202400001154 MARIPOSA LANDSCAPES INCW1 EXTRA WORK - LMA 9 MEDIANS43370011104614 105666 2,954.45 01/26/202400001154 MARIPOSA LANDSCAPES INCW1 LMA 9 LANDSCAPE MAINT - MEDIAN43370011104614 105689 24,745.40 01/26/202400001154 MARIPOSA LANDSCAPES INCW1 LANDSCAPE MAINT - ENTRADA43921011104614 105689 5,040.80 01/26/202400001155 OTIS ELEVATOR COW1 ELEVATOR SVC - SHERIFF CENTER43695005104195 100401400852 210.05 01/26/202400001156 PALM DESERT PACIFIC OWNER LLCW1 MALL CAM CHARGES JAN '2343310004254430 202300000065JN23 6,713.74 01/26/202400001156 PALM DESERT PACIFIC OWNER LLCW1 MALL CAM CHARGES FEB 2343310004254430 202300000229FB23 6,713.74 01/26/202400001156 PALM DESERT PACIFIC OWNER LLCW1 MALL CAM CHARGES JAN 23 - JUN43310004254430 202300000423MR23 6,713.74 01/26/202400001156 PALM DESERT PACIFIC OWNER LLCW1 MALL CAM CHARGES MAR '2343310004254430 202300000603AP23 6,713.74 01/26/202400001156 PALM DESERT PACIFIC OWNER LLCW1 MALL CAM CHARGES MAY '2343310004254430 202300000834MY23 6,713.74 01/26/202400001156 PALM DESERT PACIFIC OWNER LLCW1 MALL CAM CHARGES JUN '2343310004254430 202300001011JU23 6,713.74 01/26/202400001156 PALM DESERT PACIFIC OWNER LLCW1 MALL CAM CHARGES JUL '2343310004254430 202300001165JL23 6,713.74 01/26/202400001156 PALM DESERT PACIFIC OWNER LLCW1 MALL CAM CHARGES AUG '2343310004254430 202300001342AG23 6,713.74 01/26/202400001156 PALM DESERT PACIFIC OWNER LLCW1 MALL CAM CHARGES SEP '2343310004254430 202300001500SP23 6,713.74 01/26/202400001156 PALM DESERT PACIFIC OWNER LLCW1 MALL CAM CHARGES OCT '2343310004254430 202300001663OC23 6,713.74 01/26/202400001156 PALM DESERT PACIFIC OWNER LLCW1 MALL CAM CHARGES NOV '2343310004254430 202300001825NV23 6,713.74 01/26/202400001157 PURE WATER PARTNERS LLCW1 3 WATER DISPENSERS - CITY HALL43090001104340 1612960 499.88 01/26/202400001158 STAPLES BUSINESS ADVANTAGEW1 OFFICE SUPPLIES - CITY HALL42110001104300 3554981198 377.36 01/26/2024Report Date 4Page City and Housing DocuSign Envelope ID: 4EEDCD38-4055-42B5-9B0F-3BE1FB51158F Page 58 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 1/26/2024 - 1/26/2024 City of Palm Desert Account Number 01/26/202400001158 STAPLES BUSINESS ADVANTAGEW1 Supplies S.Kolbeck & C.Ortega42110001104150 3557016641 72.32 01/26/202400001158 STAPLES BUSINESS ADVANTAGEW1 Legal Storage Boxes42110001104159 3557016641 91.82 01/26/202400001159 THE ALTUM GROUPW1 ENG/DESIGN SRVS - ADA CAHUILLA43880002204800 9149 11,257.71 01/26/202400001160 The [RE]DESIGN GroupW1 Advanced PEN test Audit & Svcs43090001104190 6947 24,000.00 01/26/202400001161 TILDEN-COIL CONSTRUCTORS INCW1 RTNT P115697/C34240020600004500000 RTNT PP#17 -6,214.40 01/26/202400001161 TILDEN-COIL CONSTRUCTORS INCW1 DESIGN-BUILD OF THE DEVELOPMEN44001004504161 PP#17 3,664.75 01/26/202400001161 TILDEN-COIL CONSTRUCTORS INCW1 CO#1 - DEVELOPMENT SRVS LOBBY44001004504161 PP#17 17,921.25 01/26/202400001161 TILDEN-COIL CONSTRUCTORS INCW1 CO #3 - Changes to electrical,44001004504161 PP#17 69,684.00 01/26/202400001161 TILDEN-COIL CONSTRUCTORS INCW1 CO #4 - Owner requested floori44001004504161 PP#17 33,018.00 01/26/202400001162 VERIZON WIRELESS SERVICES LLCW1 Verizon Nov24-Dec2322899501100000 9952482835 4,430.79 01/26/202400001162 VERIZON WIRELESS SERVICES LLCW1 EOC DEC8-JAN722899501100000 9953586645 59.31 01/26/202400001162 VERIZON WIRELESS SERVICES LLCW1 Verizon MIFI NOV29-DEC2822899501100000 9952866629 1,090.89 01/26/202400001163 VINTAGE ASSOCIATESW1 LMA 16 EXTRA WORK - HAYSTACK43321002764374 231676 714.49 01/26/202400001163 VINTAGE ASSOCIATESW1 LMA 16 LANDSCAPE MAINT - PARKS43320011104611 231330 23,098.00 01/26/202400001163 VINTAGE ASSOCIATESW1 LMA 16 COURT MAINT - PARKS43325011104611 231330 1,135.00 01/26/202400001163 VINTAGE ASSOCIATESW1 LMA 16 LANDSCAPE MAINT - COMM43910001104611 231330 837.00 01/26/202400001163 VINTAGE ASSOCIATESW1 LMA 16 LANDSCAPE MAINT - HAYST43320002764374 231330 3,650.00 01/26/202400001163 VINTAGE ASSOCIATESW1 LMA 17 - CIVIC CENTER PARK43320011104610 231331 16,200.00 01/26/202400001163 VINTAGE ASSOCIATESW1 LMA 17 - SPORTS FIELDS43371001104610 231331 4,500.00 01/26/202400001163 VINTAGE ASSOCIATESW1 LMA 16 - UNIVERSITY PARKS43320011104611 231330 2,200.00 01/26/202400001163 VINTAGE ASSOCIATESW1 LMA 16 EXTRA WORK - PARKS43320011104611 231412 844.24 01/26/202400001163 VINTAGE ASSOCIATESW1 LMA 16 EXTRA WORK - HOVLEY43320011104611 231482 562.79 01/26/202400001163 VINTAGE ASSOCIATESW1 LMA 17 - MAGNESIA FALLS PARK43320011104611 231331 4,000.00 01/26/202400001163 VINTAGE ASSOCIATESW1 LMA 17 - AQUATIC CENTER43311012424549 231331 1,400.00 01/26/202400001163 VINTAGE ASSOCIATESW1 LMA 17 - PARKVIEW OFFICE BLDG43696015104195 231331 2,000.00 01/26/202400001163 VINTAGE ASSOCIATESW1 LMA 17 - STATE BLDG43696025104195 231331 300.00 01/26/202400001164 VISUAL EDGE IT INCW1 Refill Staples Cartridges42120001104190 24AR1444205 143.29 01/26/2024Report Date 5Page City and Housing DocuSign Envelope ID: 4EEDCD38-4055-42B5-9B0F-3BE1FB51158F Page 59 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 1/26/2024 - 1/26/2024 City of Palm Desert Account Number 01/26/202400001165 Zoho CorporationW1 ManageEngine Software FY24/2543620011104190 2391921 7,852.00 01/26/202402001847 BURRTECW1 Nov23 Franchise Agreement for43090002364195 113023 13,864.04 01/26/202402001847 BURRTECW1 MAR23 Collection ofSolidWaste43090002364195 33123 13,783.04 01/26/202402001848 CALIFORNIA DEPARTMENT OF TAXW1 2023 Sales Tax Due20702001100000 2023 SALES TAX 1,100.16 01/26/202402001848 CALIFORNIA DEPARTMENT OF TAXW1 2023 Sales Tax Due - Rounding43630001104150 2023 SALES TAX -0.17 01/26/202402001848 CALIFORNIA DEPARTMENT OF TAXW1 2023 Sales Tax Due20702002420000 2023 SALES TAX 1,529.01 01/26/202402001848 CALIFORNIA DEPARTMENT OF TAXW1 2023 Sales Tax Due20702004360000 2023 SALES TAX 50.00 01/26/202402001849 CASH, PETTYW1 LIVESCAN SERVICE43056001104154 ORTEGA 12/12/23 61.00 01/26/202402001849 CASH, PETTYW1 LIVESCAN SERVICE43056001104154 OLIVARES12/12/23 59.00 01/26/202402001849 CASH, PETTYW1 LIVESCAN SERVICE43056001104154 KOLBECK 1/8/24 61.00 01/26/202402001849 CASH, PETTYW1 LIVESCAN SERVICE43056001104154 CASTRO 1/8/24 59.00 01/26/202402001849 CASH, PETTYW1 HR HAPPY HR F&B43125001104154 STAEHLE 11/16/23 95.40 01/26/202402001849 CASH, PETTYW1 APWA SP-DC2343125001104300 GAUGUSH12/14/23 120.00 01/26/202402001850 CHARTER COMMUNICATIONSW1 JN24 Corp Yard Internet43650001104190 1093262010724 82.40 01/26/202402001850 CHARTER COMMUNICATIONSW1 JN24 73571 MAGNESIA FALLS-PDAC43650002424549 525504011724 264.43 01/26/202402001851 COLLEGE OF THE DESERT FOUNDATIONW1 State of the College sponsorsh43062011104800 1018 2,500.00 01/26/202402001852 CSMFOW1 V.Chavez CSMFO Event43125001104150 200022213 50.00 01/26/202402001852 CSMFOW1 CSMFO Membership renewal 2443630001104150 300014316 135.00 01/26/202402001853 DESERT AIR CONDITIONING INC.W1 HVAC PM - CORPORATION YARD43310001104330 245045 1,949.00 01/26/202402001853 DESERT AIR CONDITIONING INC.W1 HVAC PM - FREEDOM / HOVLEY43310001104611 245045 133.00 01/26/202402001853 DESERT AIR CONDITIONING INC.W1 HVAC PM - FIRE STATION 33, 6743310002304220 245045 490.00 01/26/202402001853 DESERT AIR CONDITIONING INC.W1 HVAC PM - iHUB BUILDING43950004254430 245045 1,608.00 01/26/202402001854 DESERT ALARM INCW1 AQUATIC CTR: FIRE MONITOR43885001104800 478085 177.00 01/26/202402001855 DESERT PIPE & SUPPLYW1 WATER HEATER - PARKVIEW BLDG43696015104195 0016775050 263.73 01/26/202402001856 DESERT TREE SPRAYINGW1 RODENT/GOPH CONTROL - CC PARK43320011104610 2262 290.00 01/26/202402001856 DESERT TREE SPRAYINGW1 RODENT/GOPH CONTROL - PARKS43320011104611 2262 275.00 01/26/202402001856 DESERT TREE SPRAYINGW1 RODENT/GOPH CONTROL - GARDENS43910001104611 2262 80.00 01/26/2024Report Date 6Page City and Housing DocuSign Envelope ID: 4EEDCD38-4055-42B5-9B0F-3BE1FB51158F Page 60 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 1/26/2024 - 1/26/2024 City of Palm Desert Account Number 01/26/202402001856 DESERT TREE SPRAYINGW1 RODENT/GOPH CONTROL - ENTRADA43921011104614 2262 130.00 01/26/202402001856 DESERT TREE SPRAYINGW1 RODENT/GOPH CONTROL - K/B43321002854374 2262 80.00 01/26/202402001856 DESERT TREE SPRAYINGW1 RODENT/GOPHER CONTROL -CC PARK43320011104610 2449 290.00 01/26/202402001856 DESERT TREE SPRAYINGW1 GOPHER/RODENT CONTROL -PARKS43320011104611 2449 275.00 01/26/202402001856 DESERT TREE SPRAYINGW1 RODENT/GOPHER CONTROL -GARDENS43910001104611 2449 80.00 01/26/202402001856 DESERT TREE SPRAYINGW1 RODENT/GOPHER CONTROL -ENTRADA43921011104614 2449 130.00 01/26/202402001856 DESERT TREE SPRAYINGW1 RODENT/GOPHER CONTROL -K/B43321002854374 2449 80.00 01/26/202402001857 DISABILITY ACCESS CONSULTANTSW1 ADA CONSULTANT SERVICES43090001104159 23-302 2,925.00 01/26/202402001858 DOUG WALL CONSTRUCTION INCW1 TO004736 - Aquatic Center -44001002424549 3848 172,347.14 01/26/202402001859 DOVE PRINTINGW1 Printing JAN/FEB Brightside43026001104417 4221 6,511.00 01/26/202402001860 DRAGON'S EXTERMINATORW1 PEST CONTROL - CC PARK43310001104610 89234329 50.00 01/26/202402001860 DRAGON'S EXTERMINATORW1 PEST CONTROL - PARK BLDGS43310001104611 89234329 180.00 01/26/202402001860 DRAGON'S EXTERMINATORW1 PEST CONTROL - COMM GARDENS43910001104611 89234329 10.00 01/26/202402001860 DRAGON'S EXTERMINATORW1 DC23 PEST CONTROL - CC PARK43310001104610 89233509 50.00 01/26/202402001860 DRAGON'S EXTERMINATORW1 DC23 PEST CONTROL - PARK BLDGS43310001104611 89233509 180.00 01/26/202402001860 DRAGON'S EXTERMINATORW1 DC23 PEST CONTROL-COMM GARDENS43910001104611 89233509 10.00 01/26/202402001861 DUNN EDWARDS PAINTSW1 BUILDING MATERIALS - CC PARK43310001104610 2079A06815 276.43 01/26/202402001862 ENGINEERING RESOURCESW1 ENG / DESIGN - HAYSTACK REHAB50004544204370 59788 3,533.31 01/26/202402001863 FIND FOOD BANKW1 FIND T2Jan2443090002364195 380456 4,166.66 01/26/202402001863 FIND FOOD BANKW1 Find T1JAN2443090002364195 380457 2,887.50 01/26/202402001864 FULTON DISTRIBUTINGW1 JANITORIAL SUPPLIES - CH42190001104340 621273 133.12 01/26/202402001864 FULTON DISTRIBUTINGW1 JANITORIAL SUPPLIES - CH42190001104340 622257 1,981.42 01/26/202402001865 GEORGE STERN FINE ARTSW1 SCS - George Stern Fine Arts43930004254430 SCS-GSTERNFA 500.00 01/26/202402001866 GLOBAL CTI GROUP INC.W1 Mitel upgrade43360001104190 169272 1,200.00 01/26/202402001867 GRIFFITHS FENCEW1 FENCE REPAIR - PCC43310001104344 3732 375.00 01/26/202402001868 HAMMER PLUMBING AND PUMPINGW1 CAHUILLA RESTROOM PUMP SRV43310001104611 33720-1 395.00 01/26/202402001868 HAMMER PLUMBING AND PUMPINGW1 CAHUILLA RESTROOM PUMP SRV43310001104611 33721-1 395.00 01/26/2024Report Date 7Page City and Housing DocuSign Envelope ID: 4EEDCD38-4055-42B5-9B0F-3BE1FB51158F Page 61 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 1/26/2024 - 1/26/2024 City of Palm Desert Account Number 01/26/202402001868 HAMMER PLUMBING AND PUMPINGW1 CAHUILLA RESTROOM PUMP SRV43310001104611 33722-1 395.00 01/26/202402001869 HERITAGE LANDSCAPEW1 FERTILIZER - PARKS43320011104611 0013720771-001 826.81 01/26/202402001869 HERITAGE LANDSCAPEW1 IRRIG CONTROL - MONTEREY LMA 143370011104614 0013682465-001 946.21 01/26/202402001870 KINCAID INDUSTRIES INCW1 R/M PLUMBING - CC PARK43310001104610 5320 424.12 01/26/202402001870 KINCAID INDUSTRIES INCW1 R/M PLUMBING - CC PARK43310001104610 5309 642.21 01/26/202402001870 KINCAID INDUSTRIES INCW1 R/M PLUMBING - IRONWOOD43310001104611 5294 267.89 01/26/202402001870 KINCAID INDUSTRIES INCW1 R/M PLUMBING - FREEDOM43310001104611 5295 240.00 01/26/202402001871 KOA CORPORATIONW1 ENG - HAYSTACK TRAFFIC CALMING50009032134327 JC22036-21 12,354.96 01/26/202402001872 LOCK SHOP INC.W1 LOCK LUBE - PARKS42190001104611 BB10558318 26.16 01/26/202402001872 LOCK SHOP INC.W1 KEYS - PARKVIEW BLDG43696015104195 AA10065996 19.40 01/26/202402001872 LOCK SHOP INC.W1 DOOR LOCK SRVS - CITY HALL43310001104340 117299 422.61 01/26/202402001873 MAXWELL SECURITY SERVICESW1 01/24 AFTER-HOURS ALARM RESP43090001104340 2401181 400.00 01/26/202402001873 MAXWELL SECURITY SERVICESW1 AFTER-HOURS ALARM RESPONSE43090001104340 2312181 400.00 01/26/202402001874 MERCHANTS BUILDINGW1 JANITORIAL - CORPORATION YARD43310001104330 774167 2,667.98 01/26/202402001874 MERCHANTS BUILDINGW1 JANITORIAL - CITY HALL43326001104340 774167 8,569.46 01/26/202402001874 MERCHANTS BUILDINGW1 JANITORIAL - PORTOLA CC43310001104344 774167 1,347.88 01/26/202402001874 MERCHANTS BUILDINGW1 JANITORIAL - iHUB43950004254430 774167 2,028.71 01/26/202402001874 MERCHANTS BUILDINGW1 JANITORIAL - SHERIFF CTR43695005104195 774167 6,572.34 01/26/202402001874 MERCHANTS BUILDINGW1 JANITORIAL - PARKVIEW OFFICE B43696015104195 774167 7,943.77 01/26/202402001874 MERCHANTS BUILDINGW1 PARKVIEW - SUITE 12043696015104195 774168 2,532.06 01/26/202402001874 MERCHANTS BUILDINGW1 JANITORIAL - STATE BLDG43696025104195 774167 5,984.70 01/26/202402001874 MERCHANTS BUILDINGW1 JANITORIAL - HENDERSON BLDG43698005104195 774167 988.10 01/26/202402001875 PALM DESERT ACE HARDWAREW1 LANDSCAPE TOOLS - FREEDOM42190001104611 243720 49.53 01/26/202402001875 PALM DESERT ACE HARDWAREW1 BUILDING MATERIALS - FS 3343310002304220 243868 263.85 01/26/202402001876 PALM DESERT CC ASSOCW1 42135 KANSAS-ASSESMT DUES 202443630001104300 31644224-KA2024 398.00 01/26/202402001877 PALMER ELECTRICW1 ELECT REPAIRS - CC PARK43321001104610 5041 719.52 01/26/202402001877 PALMER ELECTRICW1 ELECT REPAIRS - CC PARK43321001104610 5071 359.76 01/26/2024Report Date 8Page City and Housing DocuSign Envelope ID: 4EEDCD38-4055-42B5-9B0F-3BE1FB51158F Page 62 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 1/26/2024 - 1/26/2024 City of Palm Desert Account Number 01/26/202402001877 PALMER ELECTRICW1 ELECT REPAIRS - HOVLEY43325011104611 5053 239.84 01/26/202402001877 PALMER ELECTRICW1 ELECT REPAIRS - HOVLEY43325011104611 5106 2,304.37 01/26/202402001877 PALMER ELECTRICW1 ELECT REPAIRS - MEDIANS43325011104614 5076 1,480.88 01/26/202402001877 PALMER ELECTRICW1 ELECT REPAIRS - MEDIANS43325011104614 5089 359.76 01/26/202402001877 PALMER ELECTRICW1 ELECT REPAIRS - MEDIANS43325011104614 5142 239.84 01/26/202402001877 PALMER ELECTRICW1 ELECT REPAIRS - ENTRADA43921011104614 5146 1,970.57 01/26/202402001877 PALMER ELECTRICW1 ELECT REPAIRS - FS 7143310002304220 5145 1,101.63 01/26/202402001878 PBK ARCHITECTS INCW1 FS 102 - NS FIRE STATION44001002354270 PP#09 4,400.00 01/26/202402001879 PENTA, RYLANDW1 CAPIO24 R.Penta Reimbust43120001104417 33895853 675.00 01/26/202402001880 POWERFUL PEST MANAGEMENTW1 DEC 23 PEST CONTROL - CORPYARD43090001104330 299952 104.50 01/26/202402001880 POWERFUL PEST MANAGEMENTW1 DEC 23 PEST CONTROL - CORPYARD43090001104330 299953 49.50 01/26/202402001880 POWERFUL PEST MANAGEMENTW1 DEC 23 PEST CONTROL - HIST SOC43090001104340 299955 49.50 01/26/202402001880 POWERFUL PEST MANAGEMENTW1 DEC 23 PEST CONTROL - CH43090001104340 299956 137.50 01/26/202402001880 POWERFUL PEST MANAGEMENTW1 DEC 23 PEST CONTROL - PCC43090001104344 299954 74.50 01/26/202402001880 POWERFUL PEST MANAGEMENTW1 DEC 23 PEST CONTROL - ARTISTS43885001104800 299964 99.00 01/26/202402001880 POWERFUL PEST MANAGEMENTW1 DEC 23 PEST CONTROL - FS 3343310002304220 299961 88.00 01/26/202402001880 POWERFUL PEST MANAGEMENTW1 DEC 23 PEST CONTROL - FS 6743310002304220 299962 71.50 01/26/202402001880 POWERFUL PEST MANAGEMENTW1 DEC 23 PEST CONTROL - FS 7143310002304220 299963 71.50 01/26/202402001880 POWERFUL PEST MANAGEMENTW1 DEC 23 PEST CONTROL - SHERIFF43695005104195 299959 88.00 01/26/202402001880 POWERFUL PEST MANAGEMENTW1 DEC 23 PEST CONTROL - PARKVIEW43696015104195 299957 82.50 01/26/202402001880 POWERFUL PEST MANAGEMENTW1 DEC 23 PEST CONTROL - STATE43696025104195 299958 88.00 01/26/202402001880 POWERFUL PEST MANAGEMENTW1 DEC 23 PEST CONTROL- HENDERSON43698005104195 299960 132.00 01/26/202402001881 RIVARD, ROBERT TRINITYW1 Artist to create a design for43092004364650 000001 3,000.00 01/26/202402001882 SINATRA & COOK PROJECT LLCW1 iHUB Rent - Month 4843450004254430 MNTH48FEB2024 17,119.23 01/26/202402001883 SOLID WASTE ASSOCIATION OFW1 Member Dues Luis Moctezuma43090002364195 2025 1971441 290.00 01/26/202402001884 SOUTHERN CALIFORNIA EDISONW1 72880 Highway 111 Sears Bldg43514004254430 700780412029DC23 949.93 01/26/202402001884 SOUTHERN CALIFORNIA EDISONW1 73710 FW STE20443514005104195 700835256536DC23 98.90 01/26/2024Report Date 9Page City and Housing DocuSign Envelope ID: 4EEDCD38-4055-42B5-9B0F-3BE1FB51158F Page 63 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 1/26/2024 - 1/26/2024 City of Palm Desert Account Number 01/26/202402001884 SOUTHERN CALIFORNIA EDISONW1 73710 FW STE20043514005104195 700835292306DC23 904.40 01/26/202402001884 SOUTHERN CALIFORNIA EDISONW1 43556 1/2 San Pablo37999991100000 700654070741JN24 290.01 01/26/202402001884 SOUTHERN CALIFORNIA EDISONW1 74705 42nd PED43514001104330 700117253442JN24 1,863.07 01/26/202402001884 SOUTHERN CALIFORNIA EDISONW1 73510 FW City Hall43514001104340 700116008610JN24 8,598.48 01/26/202402001884 SOUTHERN CALIFORNIA EDISONW1 73710 FW STE20443514001104344 700835256536JN24 237.76 01/26/202402001884 SOUTHERN CALIFORNIA EDISONW1 73710 FW STE20043514001104344 700835292306JN24 907.54 01/26/202402001884 SOUTHERN CALIFORNIA EDISONW1 73710 FW STE20043514001104344 700835292306JN24 1,921.93 01/26/202402001884 SOUTHERN CALIFORNIA EDISONW1 73710 FW Pumpstation43514001104610 700169234934JN24 4,977.47 01/26/202402001884 SOUTHERN CALIFORNIA EDISONW1 CC Park - San Pablo43514001104610 700167703344JN24 5,740.42 01/26/202402001884 SOUTHERN CALIFORNIA EDISONW1 43980 1/2 San Pablo Rd43514001104614 700339281893JN24 6,342.44 01/26/202402001884 SOUTHERN CALIFORNIA EDISONW1 73751 Magnesia Falls Dr POOL43514002424549 700019219986JN24 11,144.61 01/26/202402001884 SOUTHERN CALIFORNIA EDISONW1 73720 FW STE 100A43514005104195 700066496069JN24 994.50 01/26/202402001884 SOUTHERN CALIFORNIA EDISONW1 (1) 73710 / 73720 FW STE43514005104195 700485107855JN24 3,587.00 01/26/202402001884 SOUTHERN CALIFORNIA EDISONW1 (2) 73710 FW Dr DR2 / HM143696015104195 700485107855JN24 843.14 01/26/202402001884 SOUTHERN CALIFORNIA EDISONW1 (3) 73720 FW Dr HM43696025104195 700485107855JN24 434.23 01/26/202402001885 SOUTHWEST AQUATICSW1 R/M LAGOON - CIVIC CENTER PARK43320011104610 12-21298 4,114.00 01/26/202402001885 SOUTHWEST AQUATICSW1 R/M WATER FEATURE - ENTRADA43921011104614 12-21298 1,030.00 01/26/202402001886 SPERIDIAN TECHNOLOGIES LLCW1 Project Kick off43900001104190 31226 108,180.00 01/26/202402001887 TOWNSEND PUBLIC AFFAIRS INCW1 JAN24 Grant Management Svcs43090001104159 21047 3,750.00 01/26/202402001888 VERIZON SELECT SERVICES INCW1 DEC23 Toll Free43650001104159 131822689DEC23 0.73 01/26/202402001889 VISIT GREATER PALM SPRINGSW1 2023-2024 Contribution for GPS43220001104800 CI-000186 106,250.00 01/26/202402001890 WATERLINE TECHNOLOGIES INCW1 CHEMICALS - AQUATIC CENTER42111002424549 5667221 685.29 01/26/202402001891 WHITE CAP LPW1 LANDSCAPE SUPPLIES - CC PARK43320011104610 50024718222 120.35 01/26/202402001891 WHITE CAP LPW1 LANDSCAPE SUPPLIES - FREEDOM43320011104611 10019236819 116.77 01/26/202402001892 XPRESS GRAPHICSW1 PD In Touch Rack Card43610001104417 24-59029 188.64 01/26/2024Report Date 10Page City and Housing DocuSign Envelope ID: 4EEDCD38-4055-42B5-9B0F-3BE1FB51158F Page 64 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 1/26/2024 - 1/26/2024 City of Palm Desert Account Number Examined and Approved Total For Bank ID - W1 1,302,977.19City Manager Examined and Approved Mayor or Mayor Pro-Tem Audited and Found Correct Director of Finance 01/26/2024Report Date 11Page City and Housing DocuSign Envelope ID: 4EEDCD38-4055-42B5-9B0F-3BE1FB51158F Page 65 of 1128 Page 66 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 2/1/2024 - 2/1/2024 City of Palm Desert Account Number 02/01/202400001167 ALLEN, FRANKW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 218.36 02/01/202400001168 AVERY, ANNW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 480.54 02/01/202400001169 BASSLER, THOMASW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 554.47 02/01/202400001170 BISHOP, ROBERTW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 517.51 02/01/202400001171 BLYTHE, BARBARAW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 471.21 02/01/202400001172 BO CHENW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 523.56 02/01/202400001173 BRADLEY, DEBRAW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 742.39 02/01/202400001174 BROWN, MICHAELW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 730.85 02/01/202400001175 CECHIN, TERRYW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 711.31 02/01/202400001176 CEHR, DAVIDW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 554.47 02/01/202400001177 CICCHINI, SUZANNEW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 1,066.96 02/01/202400001178 CONLON, PATRICK C.W1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 554.47 02/01/202400001179 CRAWFORD, DANNYW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 1,810.13 02/01/202400001180 CROY, HOMERW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 369.65 02/01/202400001181 DARLING, GLORIAW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 218.36 02/01/202400001182 HOLLINGER, DIANEW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 554.47 02/01/202400001183 DIERCKS, MARKW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 125.84 02/01/202400001184 DOYLE, KARENW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 696.15 02/01/202400001185 DRELL, PHILIP D.W1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 554.47 02/01/202400001186 ESPINOZA, JOSE LUISW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 2,088.61 02/01/202400001187 FANNING, JODIW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 1,022.98 02/01/202400001188 FENSKE, CHARLESW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 554.47 02/01/202400001189 FERGUSON, JAMES C.W1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 1,368.86 02/01/202400001190 FLINT, DAVIDW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 189.25 02/01/202400001191 FOLKERS, RICHARD J.W1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 218.36 02/01/202400001192 GARCIA, MIGUELW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 730.85 02/01/202400001193 GARNER, PAGEW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 1,078.51 02/01/2024Report Date 1Page City and Housing DocuSign Envelope ID: 0F4317C9-C321-4E80-B5D8-9C68A9F4B335 Page 67 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 2/1/2024 - 2/1/2024 City of Palm Desert Account Number 02/01/202400001194 GAUGUSH, CORAW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 1,579.45 02/01/202400001195 GIBSON, PAUL S.W1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 1,066.96 02/01/202400001196 GODFREY, BEN ORRINW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 554.47 02/01/202400001197 GOMEZ, DONNAW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 1,579.45 02/01/202400001198 GRANCE, RUSSELLW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 934.71 02/01/202400001199 GREENWOOD, MARKW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 1,579.45 02/01/202400001200 GRIFFIN, ROSALVAW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 295.55 02/01/202400001201 HENDERSON, RHONDAW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 878.22 02/01/202400001202 HERMANN, DAVIDW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 1,474.16 02/01/202400001203 HERNANDEZ, ANTHONYW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 730.85 02/01/202400001204 HERNANDEZ, CARLOSW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 1,579.45 02/01/202400001205 HOLTZ, GREGGW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 554.47 02/01/202400001206 JOHNSON, SONDRAW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 554.47 02/01/202400001207 JOY, PHILLIP E.W1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 531.31 02/01/202400001208 JUDY, JANINE MARIEW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 203.80 02/01/202400001209 KARIMI, BASHIER AHMADW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 218.36 02/01/202400001210 KILPATRICK, SHAWNW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 1,602.54 02/01/202400001211 KLASSEN, RACHELLE D.W1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 1,066.96 02/01/202400001212 KNIGHT, SPENCERW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 554.47 02/01/202400001213 KNUTSON, LAURELW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 129.30 02/01/202400001214 LEAL, DIANAW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 1,017.22 02/01/202400001215 LEON, PATRICIAW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 730.85 02/01/202400001216 LONGMAN, ELIZABETH M.W1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 174.69 02/01/202400001217 MCBRIDE, CRAIGW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 218.36 02/01/202400001218 MCCARTHY, JUSTINW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 443.58 02/01/202400001219 METZ, THOMASW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 1,576.12 02/01/202400001220 MONROE, TONYAW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 730.85 02/01/2024Report Date 2Page City and Housing DocuSign Envelope ID: 0F4317C9-C321-4E80-B5D8-9C68A9F4B335 Page 68 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 2/1/2024 - 2/1/2024 City of Palm Desert Account Number 02/01/202400001221 MOORE, JANETW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 1,579.45 02/01/202400001222 MOORE, RUTH ANNW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 730.85 02/01/202400001223 NEELY, MICHAELW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 1,078.51 02/01/202400001224 NIEMCZAK, JAYW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 101.60 02/01/202400001225 O'REILLY, MONICAW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 1,060.17 02/01/202400001226 OSBORN, LINDAW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 218.36 02/01/202400001227 PONDER, HARTW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 359.79 02/01/202400001228 PRUSINOWSKI, KARENW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 480.54 02/01/202400001229 REAM, LISAW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 345.55 02/01/202400001230 RIDDLE, FRANKIEW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 742.39 02/01/202400001231 ROCHA, GRACE L.W1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 817.47 02/01/202400001232 ROSAS, SERGIOW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 1,579.45 02/01/202400001233 RUSSELL, LINDAW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 641.75 02/01/202400001234 SCULLY, PATRICIA H.W1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 218.36 02/01/202400001235 CHRISTIANSEN, SHARONW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 730.85 02/01/202400001236 SMITH, STEPHEN R.W1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 554.47 02/01/202400001237 STANLEY, JANEW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 342.19 02/01/202400001238 SZYMANSKI, BETTYW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 1,209.23 02/01/202400001239 TOWNSEND, ALANAW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 247.48 02/01/202400001240 TUCKER, RONW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 471.21 02/01/202400001241 WALKER, DELW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 344.81 02/01/202400001242 WEIL, CHIN-YUW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 471.21 02/01/202400001243 WELLER, DENIW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 554.47 02/01/202400001244 WHITE, BRYCEW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 203.80 02/01/202400001245 WILCOX, DARINW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 356.00 02/01/202400001246 WITTE, LOCKW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 1,070.56 02/01/202400001247 WOHLMUTH, JOHNW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 745.87 02/01/2024Report Date 3Page City and Housing DocuSign Envelope ID: 0F4317C9-C321-4E80-B5D8-9C68A9F4B335 Page 69 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 2/1/2024 - 2/1/2024 City of Palm Desert Account Number 02/01/202400001248 ZAMARRIPA, AARONW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 730.85 02/01/202400001249 ZAMORA, FLORENTINO G.W1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 369.43 02/01/202400001250 ZATARAIN, GERARDOW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 1,579.45 02/01/202400001251 AMS CONNECTW1 ALARM MONITORING - CITY HALL43090001104340 4257518 288.00 02/01/202400001251 AMS CONNECTW1 ALARM MONITORING - CITY HALL43090001104340 4257517 144.00 02/01/202400001251 AMS CONNECTW1 ALARM MONITORING - HIST SOC43090001104340 4256743 432.00 02/01/202400001251 AMS CONNECTW1 ALARM MONITORING - PORTOLA CC43090001104344 4256536 225.00 02/01/202400001251 AMS CONNECTW1 ALARM MONITORING - PARKVIEW43696015104195 4256614 432.00 02/01/202400001251 AMS CONNECTW1 ALARM MONITORING - STATE BLDG43696025104195 4256609 144.00 02/01/202400001251 AMS CONNECTW1 ALARM MONITORING - STATE BLDG43696025104195 4256608 144.00 02/01/202400001251 AMS CONNECTW1 ALARM MONITORING - HENDERSON43698005104195 4256613 144.00 02/01/202400001251 AMS CONNECTW1 ALARM MONITORING - HENDERSON43698005104195 4256612 432.00 02/01/202400001252 BEST BEST & KRIEGER LLPW1 REDISTRICTING LGL 12/2343090001104114 985099 1,466.30 02/01/202400001252 BEST BEST & KRIEGER LLPW1 MONTHLY RETAINER THRU 12/2343015001104120 985207 25,714.00 02/01/202400001252 BEST BEST & KRIEGER LLPW1 BRAVO LGL 12/2343015001104121 984493 2,216.50 02/01/202400001252 BEST BEST & KRIEGER LLPW1 PERSONNEL LGL 12/2343016001104121 985206 676.40 02/01/202400001252 BEST BEST & KRIEGER LLPW1 CCRs 38751 LGL 12/2322852006100000 985100 705.60 02/01/202400001252 BEST BEST & KRIEGER LLPW1 HAF LGL 11/2343015008734195 984493 102.30 02/01/202400001253 CDW LLCW1 Credit for inv LN8380744040005304190 PB87349 -363.54 02/01/202400001253 CDW LLCW1 Credit for InvLN8380744040005304190 PB88287 -167.94 02/01/202400001253 CDW LLCW1 FY2324 2 HP Replacement44040005304190 PD07682 415.98 02/01/202400001253 CDW LLCW1 FY2324 TONER/ INK Replacement44040005304190 PD80727 756.45 02/01/202400001253 CDW LLCW1 FY2324 TV/ TV PART Replacement44040005304190 PD94300 1,159.11 02/01/202400001253 CDW LLCW1 FY2324 40INTV Replacement44040005304190 PD97220 603.18 02/01/202400001253 CDW LLCW1 FY2324 TONER Replacement44040005304190 PF33544 72.29 02/01/202400001253 CDW LLCW1 FY2324 COMP EQUIP Replacement44040005304190 PG37462 1,831.65 02/01/202400001254 Circuit Transit IncW1 Courtesy Carts December '2343681001104416 2929 25,716.24 02/01/2024Report Date 4Page City and Housing DocuSign Envelope ID: 0F4317C9-C321-4E80-B5D8-9C68A9F4B335 Page 70 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 2/1/2024 - 2/1/2024 City of Palm Desert Account Number 02/01/202400001255 ENTERPRISE HOLDINGS INCW1 FY 23/24 car rentals for Rivco43042001104210 34954456 1,328.76 02/01/202400001255 ENTERPRISE HOLDINGS INCW1 FY 23/24 car rentals for Rivco43042001104210 1076.57 1,076.57 02/01/202400001256 HIGH TECH IRRIGATION INC.W1 LANDSCAPE TOOLS - FREEDOM42190001104611 778629 132.23 02/01/202400001256 HIGH TECH IRRIGATION INC.W1 IRRIGATION SUPPLIES - FREEDOM43320011104611 779643 208.54 02/01/202400001257 HR GREEN PACIFIC INCW1 BLDG PLAN CHECKS-NOV 2343010001104420 170402 6,389.52 02/01/202400001257 HR GREEN PACIFIC INCW1 BLDG PLAN CHECKS-DEC 2343010001104420 210631 11,711.41 02/01/202400001258 KEYSER MARSTON ASSOCIATES INCW1 DC23 N. Sphere/Annexation43090001104159 0038390 125.00 02/01/202400001258 KEYSER MARSTON ASSOCIATES INCW1 DC23 N. Sphere/Annexation pt243090001104159 0038390 7,422.50 02/01/202400001259 MARIPOSA LANDSCAPES INCW1 LMA 1 ALLOWABLE EXTRA WORK43370011104614 106069 1,852.24 02/01/202400001260 MICHAEL BAKER INTERNATIONAL INCW1 SECTION 29 PLAN REVIEW50004552324370 1197189 975.00 02/01/202400001261 OTIS ELEVATOR COW1 ELEVATOR REPAIRS - PARKVIEW43696015104195 SD18503001 703.00 02/01/202400001262 PALM DESERT CHAMBER OF COMMERCEW1 Business Breakfast 1/9/2443125001104430 74860 30.00 02/01/202400001262 PALM DESERT CHAMBER OF COMMERCEW1 Harnik PDACC January Mixer43125001104110 74901 10.00 02/01/202400001262 PALM DESERT CHAMBER OF COMMERCEW1 Cafe Mixer - 1/17 EC, RP &VM43125001104430 74902 30.00 02/01/202400001263 RICHARDS WATSON & GERSHON INCW1 Bravo LGL SVC-10/2343015001104121 245702 1,679.36 02/01/202400001263 RICHARDS WATSON & GERSHON INCW1 Univ Park lgl-10/2343015001104121 245702 137.66 02/01/202400001263 RICHARDS WATSON & GERSHON INCW1 Bravo LGL SVC-11/2343015001104121 245748 391.76 02/01/202400001263 RICHARDS WATSON & GERSHON INCW1 CITY LGL SVC-11/2343015001104121 245748 391.76 02/01/202400001263 RICHARDS WATSON & GERSHON INCW1 BEGIN LOAN LGL SCV 10/2343901022144494 245702 715.79 02/01/202400001263 RICHARDS WATSON & GERSHON INCW1 BEGIN LOAN LGL SCV 11/2343901022144494 245748 261.17 02/01/202400001263 RICHARDS WATSON & GERSHON INCW1 2021-1 LGL SVC 7/2343090003544394 245748 26.12 02/01/202400001263 RICHARDS WATSON & GERSHON INCW1 HAF LGL SVC - 7/2343015008734195 245748 24.87 02/01/202400001264 SANT MADEW1 Website Hosting & Maintenance43620011104190 2853 700.00 02/01/202400001265 SIGNARAMAW1 COPS Vinyl Patches43060011104211 INV-120023 506.89 02/01/202400001266 VINTAGE ASSOCIATESW1 LMA 17 EXTRA WORK - CC PARK43320011104610 231737 2,167.83 02/01/202400001266 VINTAGE ASSOCIATESW1 JAN 24 LMA 17 - CC PARK43320011104610 231624 16,200.00 02/01/202400001266 VINTAGE ASSOCIATESW1 JN24 LMA 17-SPORTS FIELDS43371001104610 231624 4,500.00 02/01/2024Report Date 5Page City and Housing DocuSign Envelope ID: 0F4317C9-C321-4E80-B5D8-9C68A9F4B335 Page 71 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 2/1/2024 - 2/1/2024 City of Palm Desert Account Number 02/01/202400001266 VINTAGE ASSOCIATESW1 JN24LMA 17-MAGNESIA FALLS PARK43320011104611 231624 4,000.00 02/01/202400001266 VINTAGE ASSOCIATESW1 JN24 LMA 17 - AQUATIC CENTER43311012424549 231624 1,400.00 02/01/202400001266 VINTAGE ASSOCIATESW1 JN24 LMA 17-PARKVIEW OFFICE43696015104195 231624 2,000.00 02/01/202400001266 VINTAGE ASSOCIATESW1 JN24LMA 17 - STATE BLDG43696025104195 231624 300.00 02/01/202400001267 VISION SERVICE PLAN INC.W1 VSP A. Cabrera 12/202311503001100000 819268880 31.81 02/01/202400001267 VISION SERVICE PLAN INC.W1 VSP Premium 12/202321614001100000 819268880 4,055.78 02/01/202400001267 VISION SERVICE PLAN INC.W1 VSP G. Shaffer 11/202341124001104130 819268880 31.81 02/01/202400001267 VISION SERVICE PLAN INC.W1 VSP R. Lamb for 11/202341124001104134 819268880 31.81 02/01/202400001267 VISION SERVICE PLAN INC.W1 VSP E. Gutierrez for 11/202341124001104154 819268880 31.81 02/01/202400001267 VISION SERVICE PLAN INC.W1 VSP T. Butts for 11/202341124001104417 819268880 -31.81 02/01/202400001267 VISION SERVICE PLAN INC.W1 VSP R. McKewon for 11/202341124001104421 819268880 31.81 02/01/202400001267 VISION SERVICE PLAN INC.W1 VSP N. Romaidis 12/202341124001104470 819268880 15.90 02/01/202400001267 VISION SERVICE PLAN INC.W1 VSP E. Bohlin for 11/202341124001104614 819268880 31.81 02/01/202400001268 VISUAL EDGE IT INCW1 Usage&supplies 2TX101725 JAN2443420001104190 24AR1468168 90.61 02/01/202400001269 WILLDAN FINANCIAL SERVICESW1 Tax Cons Serv through 10.27.2322860006100000 010-56703 1,110.00 02/01/202400001269 WILLDAN FINANCIAL SERVICESW1 Tax Cons Serv through 11.24.2322860006100000 010-57018 7,760.00 02/01/202402001893 ACCURATE FIRST AID SERVICESW1 FIRST AID SUPPLIES - CITY HALL42190001104340 C-2316 152.33 02/01/202402001894 ADT COMMERCIAL LLCW1 Sheriff BUC/Halon Inspection43042001104210 153562227 273.49 02/01/202402001895 AMERICAN FORENSIC NURSESW1 FY 23/24 Blood draws/DUI drug43904001104210 78428 70.00 02/01/202402001895 AMERICAN FORENSIC NURSESW1 FY 23/24 Blood draws/DUI drug43904001104210 78427 210.00 02/01/202402001895 AMERICAN FORENSIC NURSESW1 FY 23/24 Blood draws/DUI drug43904001104210 78426 458.00 02/01/202402001895 AMERICAN FORENSIC NURSESW1 FY 23/24 Blood draws/DUI drug43904001104210 78425 1,260.00 02/01/202402001896 ANDERSON COMMUNICATION INCW1 COPS Microphones43060011104211 20228B 464.57 02/01/202402001897 ANTHEM BLUE CROSS EAPW1 EMS 9/28/2022 Run 22-60966034124002300000 458A52227 400.00 02/01/202402001898 AT&TW1 Sheriff-LEA Track. T23334014343042001104210 492374 70.00 02/01/202402001899 BEDROSIAN, PATRICKW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 203.80 02/01/202402001900 BIO TOX LABORATORIESW1 FY 23/24 Blood and urine analy43904001104210 45276 736.75 02/01/2024Report Date 6Page City and Housing DocuSign Envelope ID: 0F4317C9-C321-4E80-B5D8-9C68A9F4B335 Page 72 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 2/1/2024 - 2/1/2024 City of Palm Desert Account Number 02/01/202402001900 BIO TOX LABORATORIESW1 FY 23/24 Blood and urine analy43904001104210 45277 2,198.45 02/01/202402001900 BIO TOX LABORATORIESW1 FY 23/24 Blood and urine analy43904001104210 45403 258.88 02/01/202402001900 BIO TOX LABORATORIESW1 FY 23/24 Blood and urine analy43904001104210 45404 3,903.06 02/01/202402001900 BIO TOX LABORATORIESW1 FY 23/24 Blood and urine analy43904001104210 45462 151.35 02/01/202402001901 BLUE SHIELD OF CALIFORNIAW1 EMS 08/04/2023 Run 23-49119034124002300000 90404946200 84.02 02/01/202402001902 BMW MOTORCYCLE OF RIVERSIDEW1 FY 23/24 Maintenance and repai43340001104210 6035018 260.67 02/01/202402001902 BMW MOTORCYCLE OF RIVERSIDEW1 FY 23/24 Maintenance and repai43340001104210 6035017 177.25 02/01/202402001903 BOUNDS, JAMESW1 CSMFO J. Bounds Renewal 24/2543630001104150 300014465 135.00 02/01/202402001904 BOYS & GIRLS CLUB OF C VW1 JH, KK, BGCCV Grand Auction43886001104800 2023 400.00 02/01/202402001905 BRIAN K. STEMMER CONSTRUCTIONW1 PW OFFICE CONSTRUCTION44001004504161 5889 24,950.00 02/01/202402001906 C A C E OW1 MBRSHP DUES-D. HURTADO43630001104422 300018477 100.00 02/01/202402001906 C A C E OW1 MBRSHP DUES-D. MORA43630001104422 300018700 100.00 02/01/202402001906 C A C E OW1 MBRSHP DUES-A. CASTRO43630001104422 300019458 100.00 02/01/202402001907 CALIFORNIA MUNICIPAL REVENUE &W1 CMRTA Annual Membership43630001104150 3384 150.00 02/01/202402001908 CITY CLERKS ASSOCIATIONW1 A. Mejia CCAC 2024 Conf. Reg.43120001104111 200002961 750.00 02/01/202402001908 CITY CLERKS ASSOCIATIONW1 N. Ortega CCAC 2024 Conf. Reg.43120001104111 200002959 750.00 02/01/202402001909 COACHELLA VALLEY WATER DIST.W1 1150 WASHINGTON / I-1043510001104614 587615849914JN24 303.69 02/01/202402001909 COACHELLA VALLEY WATER DIST.W1 Portola Ave - Fire Meter43510002304220 805025629618JN24 56.27 02/01/202402001909 COACHELLA VALLEY WATER DIST.W1 iHUB CVWD (12/11 - 1/11)43950004254430 720041309104JN24 61.33 02/01/202402001909 COACHELLA VALLEY WATER DIST.W1 1149 ST MEDIANS NORTH43510001104614 586651849912JA24 195.07 02/01/202402001909 COACHELLA VALLEY WATER DIST.W1 73995 Country Club FS7143510002304220 122335377974JA24 337.42 02/01/202402001909 COACHELLA VALLEY WATER DIST.W1 Portola Ave - Landscape43510001104614 805025629618DC23 63.65 02/01/202402001910 CONSTANT CONTACT INCW1 Deposit Invoice - Constant Con43090001104430 E7T6BVABB 765.00 02/01/202402001911 COUNCIL ON MUNICIPAL CANNABISW1 MBRSHP DUES-L. RITCHEY43630001104470 2401 120.00 02/01/202402001912 County of Riverside Sheriff DepartmentW1 50th Ann. Sheriff Extra Duty43040001104210 SH0000044599 10,011.37 02/01/202402001912 County of Riverside Sheriff DepartmentW1 GC Parade Sheriff Extra Duty43040001104210 SH0000044395 16,979.77 02/01/202402001913 COUNTY OF RIVERSIDE SHERIFFW1 FY 23/24 Burglary Suppression42170001104210 SH0000044778 1,136.55 02/01/2024Report Date 7Page City and Housing DocuSign Envelope ID: 0F4317C9-C321-4E80-B5D8-9C68A9F4B335 Page 73 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 2/1/2024 - 2/1/2024 City of Palm Desert Account Number 02/01/202402001913 COUNTY OF RIVERSIDE SHERIFFW1 FY 23/24 Burglary Suppression42170001104210 SH0000044779 1,207.49 02/01/202402001913 COUNTY OF RIVERSIDE SHERIFFW1 FY 23/24 PD Police Motor Fuel42170001104210 SH0000044780 1,413.07 02/01/202402001913 COUNTY OF RIVERSIDE SHERIFFW1 FY 23/24 PD Police Motor Fuel42170001104210 SH0000044781 1,159.22 02/01/202402001914 Cristal OrtegaW1 24CAPPO CONF C.Ortega & Ramont43120001104150 200011567 990.00 02/01/202402001915 D F M ASSOCIATESW1 2024 CA Elec. Code Print/Bind42110001104114 1.22.2024 87.00 02/01/202402001916 DATA TICKET INCW1 CITATION PROCESSING DEC-2343090001104422 160524 234.20 02/01/202402001917 DEPARTMENT OF JUSTICEW1 FY 23/24 Blood alcohol analysi43904001104210 710463 315.00 02/01/202402001918 DESERT AIR CONDITIONING INC.W1 HVAC REPAIRS - CITY HALL43310001104340 242357 308.30 02/01/202402001918 DESERT AIR CONDITIONING INC.W1 HVAC REPAIRS - HIST SOCIETY43310001104340 244434 544.00 02/01/202402001918 DESERT AIR CONDITIONING INC.W1 HVAC REPAIRS - FS 3343310002304220 244433 242.00 02/01/202402001918 DESERT AIR CONDITIONING INC.W1 HVAC REPAIRS - SHERIFF CENTER43695005104195 240667 270.00 02/01/202402001918 DESERT AIR CONDITIONING INC.W1 HVAC REPAIRS - ARTIST CENTER43885001104800 241099 148.50 02/01/202402001919 DESERT ARCW1 Sponsorship43062011104800 68468 1,500.00 02/01/202402001920 DESERT ELECTRIC SUPPLYW1 ELECT SUPPLIES - HENDERSON43698005104195 S3145842.001 104.92 02/01/202402001921 DESERT RECREATION DISTRICTW1 PARKS / REC SRVS - PORTOLA CC43090001104344 3588 9,019.28 02/01/202402001921 DESERT RECREATION DISTRICTW1 PARK SRVS - CIVIC CENTER PARK43092001104610 3587 45,943.27 02/01/202402001922 DESERT VALLEYS BUILDERSW1 DVBA Training the Wforce Feb2843125001104430 DVBA02082024 48.00 02/01/202402001923 EISENHOWER MEDICAL CENTERW1 FY 23/24 Medical Examinations43904001104210 T233340159 1,200.00 02/01/202402001923 EISENHOWER MEDICAL CENTERW1 FY 23/24 Medical Examinations43904001104210 T233430007 800.00 02/01/202402001923 EISENHOWER MEDICAL CENTERW1 FY 23/24 Medical Examinations43904001104210 T233440006 800.00 02/01/202402001924 ESQUEDA, MINDY S.W1 EMER SVCS TRAINING 1/12/2442191001104159 ESQUEDA 311 225.00 02/01/202402001925 FOSTER GARDNER INC.W1 FERTILIZER - CIVIC CENTER PARK43320011104610 275708 4,989.94 02/01/202402001926 FULTON DISTRIBUTINGW1 JANITORIAL SUPPLIES- CITY HALL42190001104340 624589 1,358.03 02/01/202402001927 GALLS LLCW1 COPS Uniforms43060011104211 026771293 540.37 02/01/202402001928 GRASHOW, JAMESW1 Speaker Film Series 2-28-2443092004364650 02282024 250.00 02/01/202402001929 GREAT WESTERN INSTALLATIONSW1 PADOGA REPLACEMENT - CC PARK44001001104618 2307139 3,736.04 02/01/202402001929 GREAT WESTERN INSTALLATIONSW1 TURF RESURFACE-UNIVERSITY PARK44001001104618 2306059 8,971.00 02/01/2024Report Date 8Page City and Housing DocuSign Envelope ID: 0F4317C9-C321-4E80-B5D8-9C68A9F4B335 Page 74 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 2/1/2024 - 2/1/2024 City of Palm Desert Account Number 02/01/202402001930 HERITAGE PROVIDER NETWORK INCW1 EMS 11/6/23 Run 23-71785934124002300000 20130700942300 589.82 02/01/202402001931 IMPERIAL IRRIGATION DISTRICTW1 33108 Mont Safety Lt43514001104250 50650535-JN24 159.82 02/01/202402001932 INTERPRETERS UNLIMITED INCW1 Sheriff Interpreter Services43042001104210 370706 26.25 02/01/202402001933 Jennifer Trainer ThompsonW1 Film Series spkr J Thompson43092004364650 124 400.00 02/01/202402001934 JOHN KALISKI ARCHITECTS INCW1 ODS DEC-2343090001104470 6713 3,928.75 02/01/202402001935 JUNK EXPRESS LLC, THEW1 ABATE CASE #23-259043055001104422 210413 325.00 02/01/202402001936 KINCAID INDUSTRIES INCW1 R/M PLUMBING - FS 3343310002304220 5248 300.00 02/01/202402001936 KINCAID INDUSTRIES INCW1 R/M PLUMBING - FIRE STATION 6743310002304220 5255 300.00 02/01/202402001937 KNORR SYSTEMS INCW1 DEC23 MONTHLY PM - AQUATIC CT43311012424549 223940 2,970.00 02/01/202402001938 KUNA-FMW1 Redistricting Radio Adv.43090001104114 663244-3 495.00 02/01/202402001939 LA PRENSA HISPANAW1 CDBG Block Grant Notice43210001104111 897 945.00 02/01/202402001940 LOCK SHOP INC.W1 COP Keys43060011104211 BB10558558 99.40 02/01/202402001941 LOWE'S HOME CENTERS INC.W1 TRAFFIC SUPPLIES42190001104250 978275-120123 37.83 02/01/202402001941 LOWE'S HOME CENTERS INC.W1 SAFETY SUPPLIES - CITY HALL42190001104340 988030-120423 86.94 02/01/202402001941 LOWE'S HOME CENTERS INC.W1 EQUIP BATTERIES - CITY HALL42190001104340 979326-122123 407.40 02/01/202402001941 LOWE'S HOME CENTERS INC.W1 EQUIPMENT TOOLS - CC PARK42190001104610 990036-120423 691.80 02/01/202402001941 LOWE'S HOME CENTERS INC.W1 BLDG MATERIALS - CC PARK43310001104610 982010-121123 130.59 02/01/202402001941 LOWE'S HOME CENTERS INC.W1 BLDG MATERIALS - CC PARK43310001104610 983786-121223 269.98 02/01/202402001941 LOWE'S HOME CENTERS INC.W1 TOOLS - LMA 16 PARKS42190001104611 983030-121223 220.06 02/01/202402001941 LOWE'S HOME CENTERS INC.W1 BLDG MATERIALS - FS 3343310002304220 960204-120623 358.05 02/01/202402001941 LOWE'S HOME CENTERS INC.W1 ELECTRICAL SUPPLIES - EL PASEO43325011104614 997420-112823 32.69 02/01/202402001942 MERCHANTS BUILDINGW1 JANITORIAL SRVS - PARKVIEW43696015104195 758686 750.00 02/01/202402001942 MERCHANTS BUILDINGW1 JAN 24 JANITORIAL - CORPYARD43310001104330 779437 2,667.98 02/01/202402001942 MERCHANTS BUILDINGW1 JANITORIA - CITY HALL43326001104340 779437 8,569.46 02/01/202402001942 MERCHANTS BUILDINGW1 JANITORIAL - PORTOLA CC43310001104344 779437 1,347.88 02/01/202402001942 MERCHANTS BUILDINGW1 JANITORIAL - iHUB43950004254430 779437 2,028.71 02/01/202402001942 MERCHANTS BUILDINGW1 JANITORIAL - SHERIFF CTR43695005104195 779437 6,572.34 02/01/2024Report Date 9Page City and Housing DocuSign Envelope ID: 0F4317C9-C321-4E80-B5D8-9C68A9F4B335 Page 75 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 2/1/2024 - 2/1/2024 City of Palm Desert Account Number 02/01/202402001942 MERCHANTS BUILDINGW1 JANITORIAL - PARKVIEW BLDG43696015104195 779437 7,943.77 02/01/202402001942 MERCHANTS BUILDINGW1 JANITORIAL - STATE BLDG43696025104195 779437 5,984.70 02/01/202402001942 MERCHANTS BUILDINGW1 JANITORIAL - HENDERSON BLDG43698005104195 779437 988.10 02/01/202402001943 MULTI W SYSTEMS INCW1 IRRIG PUMP - CIVIC CENTER PARK43320011104610 32430117 4,750.00 02/01/202402001943 MULTI W SYSTEMS INCW1 IRRIG PUMP - FREEDOM/HOVLEY43320011104611 32430117 6,000.00 02/01/202402001944 NUTRIEN AG SOLUTIONS INCW1 GRASS SEED - CC PARK43320011104610 603-3 16,125.00 02/01/202402001944 NUTRIEN AG SOLUTIONS INCW1 GRASS SEED - SPORTS FIELDS43371001104610 603-3 16,125.00 02/01/202402001944 NUTRIEN AG SOLUTIONS INCW1 GRASS SEED - LMA 16 PARKS43320011104611 603-3 12,900.00 02/01/202402001944 NUTRIEN AG SOLUTIONS INCW1 GRASS SEED - HAYSTACK43321002764374 603-3 9,675.00 02/01/202402001945 OUTDOOR CREATIONS INCW1 MONUM SIGNS - PRESIDENTS PLAZA43321002774373 10862 12,998.63 02/01/202402001945 OUTDOOR CREATIONS INCW1 CONCRETE PARK FFE - HOVLEY44001004004618 10861 66,954.28 02/01/202402001946 PALM DESERT ACE HARDWAREW1 BLDG SUPPLIES - CITY HALL42190001104340 243396 63.93 02/01/202402001946 PALM DESERT ACE HARDWAREW1 BLDG MATERIALS - CITY HALL43310001104340 243331 30.67 02/01/202402001946 PALM DESERT ACE HARDWAREW1 LANDSCAPE TOOLS - CC PARK42190001104610 243172 22.15 02/01/202402001946 PALM DESERT ACE HARDWAREW1 LANDSCAPE TOOLS - CC PARK42190001104610 243322 31.24 02/01/202402001946 PALM DESERT ACE HARDWAREW1 BLDG MATERIALS - CC PARK43310001104610 243449 17.66 02/01/202402001946 PALM DESERT ACE HARDWAREW1 NUTS / BOLTS - CC PARK COURTS43321001104610 243336 29.04 02/01/202402001946 PALM DESERT ACE HARDWAREW1 LANDSCAPE TOOLS - MAG FALLS42190001104611 243191 70.47 02/01/202402001946 PALM DESERT ACE HARDWAREW1 SUPPLIES - MAG FALLS43310001104611 243246 81.84 02/01/202402001946 PALM DESERT ACE HARDWAREW1 BENCH REPAIRS - ARTIST CENTER43885001104800 243219 53.83 02/01/202402001946 PALM DESERT ACE HARDWAREW1 BLDG MATERIALS - FS 3343310002304220 243257 3.00 02/01/202402001946 PALM DESERT ACE HARDWAREW1 LIGHTING SUPPLIES - SHERIFF CT43695005104195 243340 12.91 02/01/202402001946 PALM DESERT ACE HARDWAREW1 INSECT TRAPS - HENDERSON43698005104195 243382 16.79 02/01/202402001947 PALMER ELECTRICW1 LIGHTING EQUIPMENT AND INSTALL44001004364650 5075 2,079.93 02/01/202402001948 PENTA, RYLANDW1 CAPIO WEBNIAR R.Penta Reimbust43120001104417 INVOICE - 20073 30.00 02/01/202402001949 PORTOLA PALMS HOMEOWNERSW1 HOA Fees for PPMHP #7343370008734195 FEB24 1922815 330.00 02/01/202402001949 PORTOLA PALMS HOMEOWNERSW1 HOA Fees for PPMHP #12943370008734195 FEB24 1922585 330.00 02/01/2024Report Date 10Page City and Housing DocuSign Envelope ID: 0F4317C9-C321-4E80-B5D8-9C68A9F4B335 Page 76 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 2/1/2024 - 2/1/2024 City of Palm Desert Account Number 02/01/202402001950 POWERS AWARDSW1 COPS Badge43060011104211 156807 14.01 02/01/202402001951 PREST VUKSIC GREENWOODW1 DPD Visitor center 10/23 pt. 144001004514419 24720 1,283.39 02/01/202402001951 PREST VUKSIC GREENWOODW1 DPD Visitor center 10/23 pt. 244001004514419 24720 27,278.99 02/01/202402001951 PREST VUKSIC GREENWOODW1 DPD Visitor Center - 1/202444001004514419 24799 10,297.97 02/01/202402001952 QUINN COMPANYW1 PM 1 GENERATOR SRV - CY #37543310001104330 WOG00018644 557.19 02/01/202402001952 QUINN COMPANYW1 PM 1 GENERATOR SRV - CITY HALL43310001104340 WOG00018645 557.19 02/01/202402001952 QUINN COMPANYW1 PM 1 GENERATOR SRV - JOSLYN CT43310001104340 WOG00018648 557.19 02/01/202402001952 QUINN COMPANYW1 PM 1 GENERATOR SRV - FS 3343310002304220 WOG00018647 557.19 02/01/202402001953 RADAR SHOP, THEW1 Sheriff Signals Repair43042001104210 RS-12916 280.10 02/01/202402001954 RANCHO MIRAGE CHAMBER OFW1 Mmship Renewal 02/202443630001104430 111373 475.00 02/01/202402001955 RIVERSIDE COUNTY SHERIFF-PSECW1 FY 23/24 Citizens on Patrol ra43060011104211 PE0000001415 656.81 02/01/202402001955 RIVERSIDE COUNTY SHERIFF-PSECW1 FY 23/24 Citizens on Patrol ra43060011104211 PE0000001480 656.81 02/01/202402001955 RIVERSIDE COUNTY SHERIFF-PSECW1 FY 23/24 PD Police Radio Opera43042001104210 PE0000001481 136.83 02/01/202402001956 RM BROADCASTING LLCW1 50TH ANNIVERSARY RADIO CAMPAIG43222001104417 112 5,000.00 02/01/202402001957 SAN GORGONIO PASS POSSEW1 Mounted Horse Patrol43914002294210 739516 1,500.00 02/01/202402001958 SECURITY SIGNAL DEVICES INC.W1 FIRE ALARM MONITORING SERVICES43696025104195 R-00489561 218.67 02/01/202402001958 SECURITY SIGNAL DEVICES INC.W1 FIRE INSP REPAIR - STATE BLDG43696025104195 S-01114670 378.00 02/01/202402001959 SHRED-IT USAW1 Sheriff Shredding43042001104210 8005818419 22.20 02/01/202402001960 SIMPLOT PARTNERSW1 FERTILIZER - PARKS43320011104611 208149275 1,045.18 02/01/202402001961 SO CAL GASW1 45656 Mountain View Ave43512001104340 13802772650-JA24 104.46 02/01/202402001961 SO CAL GASW1 45653 Portola Avenue Apt. 143512001104340 18222512750-JA24 8.22 02/01/202402001961 SO CAL GASW1 45653 Portola Avenue Apt. 243512001104340 18432512590-JA24 38.05 02/01/202402001961 SO CAL GASW1 45480 Portola Avenue43512001104344 16752512422-JA24 303.03 02/01/202402001961 SO CAL GASW1 44400 Town Ctr Wy - FS#3343512002304220 06242756002-JA24 387.70 02/01/202402001961 SO CAL GASW1 73995 Country Club Dr - FS#7143512002304220 13562662000-JA24 97.62 02/01/202402001961 SO CAL GASW1 73200 Mesa View Dr. - FS#6743512002304220 05412483009-JA24 144.35 02/01/202402001961 SO CAL GASW1 73751 Magnesia Falls - POOL43512002424549 13149517933-JA24 13,490.51 02/01/2024Report Date 11Page City and Housing DocuSign Envelope ID: 0F4317C9-C321-4E80-B5D8-9C68A9F4B335 Page 77 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 2/1/2024 - 2/1/2024 City of Palm Desert Account Number 02/01/202402001961 SO CAL GASW1 72559 Hwy 111-Henderson43698005104195 08946430827-JA24 16.37 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 iHUB SCE (12/04 - 1/03)43950004254430 700423102627JN24 926.57 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 PD Srv Area 19 LS-1-E43514001104250 700400365524DC23 2,889.19 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (14) SHEPHERD N/O CHINOOK43514001104250 700413950271DC23 14.14 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (16) A STREET S/O 42ND43514001104250 700413950271DC23 27.16 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (21) DAISY/SHEPARD43514001104250 700413950271DC23 13.57 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (28) ALPINE & SHEPHERD43514001104250 700413950271DC23 13.57 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (29) (Shepard Lane / Scholar L43514001104250 700413950271DC23 27.16 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (32) (Jeri Lane)43514001104250 700413950271DC23 14.14 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (33) SHEPHERD /PORTOLA43514001104250 700413950271DC23 14.14 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (34) PETUNIA ll (Windflower/Sh43514001104250 700413950271DC23 13.57 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (35) COLLEGE VIEW lll (Acad/Sh43514001104250 700413950271DC23 13.57 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 Traffic lamps LS-243514001104250 700524045271DC23 355.19 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 Street lites LS-343514001104250 600001510277DC23 279.41 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 TRAFFIC SIGNALS TC-143514001104250 600001002544DC23 9,733.87 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 45656 Mountain View Ave43514001104340 700749685964DC23 26.33 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 45480 Portola CC43514001104344 700418878578DC23 975.42 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 73510 FW PARKS43514001104611 700530811124DC23 1,606.11 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 43980 1/2 San Pablo Rd43514001104614 700339281893DC23 4,834.74 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 Street Power PEDESTALS43514001104614 700019019320DC23 2,723.64 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 43556 1/2 San Pablo43514001104614 700654070741DC23 267.96 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 72567 Highway 111 Artist Ctr43885001104800 700773993861DC23 2,626.77 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 FIRESTATION 33, 67, 7143514002304220 700028290904DC23 3,658.30 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (6) PARKVIEW ESTATES43514002724374 700413950271DC23 430.31 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (3) Desert Mirage (38601 Cook)43510002734680 700017585033DC23 19.20 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (7) DESERT MIRAGE/COOK43514002734680 700413950271DC23 68.65 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (8) SANDCASTLES43514002734681 700413950271DC23 156.48 02/01/2024Report Date 12Page City and Housing DocuSign Envelope ID: 0F4317C9-C321-4E80-B5D8-9C68A9F4B335 Page 78 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 2/1/2024 - 2/1/2024 City of Palm Desert Account Number 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (4) Primrose (75530 Hovley)43510002734682 700017585033DC23 14.32 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (12) HOVLEY/HEMMINGWAY43514002734682 700413950271DC23 18.82 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (25) DIAMONDBACK43514002754643 700413950271DC23 13.57 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (21) Monterey Meadows (73100 H43510002754680 700017585033DC23 14.48 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (1) MONTEREY / MEAD. ASSMT43514002754680 700413950271DC23 68.09 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (20) The Glen (40730 M)43510002754681 700017585033DC23 14.48 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (18) Hovley Estates (40962 C /43510002754682 700017585033DC23 32.91 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (19) Sonata I (40794)43510002754683 700017585033DC23 14.89 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (3) SONATA-HOVLEY43514002754683 700413950271DC23 13.57 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (5) Sonata II (73500 Hovley)43510002754684 700017585033DC23 15.15 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (4) HOVLEY-POSADA-FONDA43514002754684 700413950271DC23 28.30 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (7) Hovley Collection (73145 H43510002754685 700017585033DC23 28.96 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (10) HOVLEY COLLECTION43514002754685 700413950271DC23 28.30 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (8) La Paloma I (40970 A/7362543510002754686 700017585033DC23 33.32 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (13) AVE ARCADIA/HOVLEY43514002754686 700413950271DC23 13.57 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (10) La Paloma II (40970 Rosar43510002754687 700017585033DC23 14.48 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (17) AVE. ROSARIO/HOVLEY43514002754687 700413950271DC23 13.57 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (14) La Paloma III (40741 Sola43510002754693 700017585033DC23 14.48 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (11) Sandpiper (40751 / 40972)43510002754694 700017585033DC23 28.96 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (22) HOVLEY LN/SANDPIPER43514002754694 700413950271DC23 13.58 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (12) Sandpiper West (40753 / 443510002754695 700017585033DC23 29.37 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (23) HOVLEY LN/SANDPIPER W43514002754695 700413950271DC23 13.58 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (13) Hovley West (40762 Hov)43510002754696 700017585033DC23 15.62 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (24) 40764 HOVLEY CT43514002754696 700413950271DC23 13.57 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (18) PALM CT/HOVLEY LN43514002754697 700413950271DC23 13.57 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (1) Canyon Cove (Calliandra)43510002764374 700017585033DC23 33.10 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (2) HAYSTACK LIGHTING DIST.43514002764374 700413950271DC23 31.49 02/01/2024Report Date 13Page City and Housing DocuSign Envelope ID: 0F4317C9-C321-4E80-B5D8-9C68A9F4B335 Page 79 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 2/1/2024 - 2/1/2024 City of Palm Desert Account Number 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (22) Presidents Plaza E/W43514002774373 700017585033DC23 657.39 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (2) Vineyards (43430 Stony)43510002784374 700017585033DC23 14.48 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (5) VINEYARDS43514002784374 700413950271DC23 112.57 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (6) The Grove (44225 Deep Cyn)43510002814374 700017585033DC23 24.46 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (9) GROVE43514002814374 700413950271DC23 332.07 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (15) Presidents Plaza III (73143514002824373 700017585033DC23 569.00 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (23) Presidents Plaza III (73143514002824373 700017585033DC23 67.24 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (17) Portola Place (44221)43510002834374 700017585033DC23 14.48 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (9) Kaufman/Broad (73502 FS)43510002854374 700017585033DC23 15.15 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (19) FRANK SINATRA W/O PORTOLA43514002854374 700413950271DC23 28.30 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (20) COLLEGE VIEW/SHEPPARD43514002874374 700413950271DC23 27.16 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (30) SUNDANCE W (Kokopelli / S43514002874681 700413950271DC23 13.57 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (26) PETUNIA I (Petunia / Shep43514002874682 700413950271DC23 13.57 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (27) PETUNIA I (W Petunia/Shep43514002874682 700413950271DC23 13.57 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (31) SUNDANCE E (Chinook / She43514002874683 700413950271DC23 14.14 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (16) Palm Desert CC (77925 Sta43510002994374 700017585033DC23 25.44 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (11) PALM DESERT C.C.43514002994374 700413950271DC23 3,060.32 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 (15) MICHIGAN / CA43514002994374 700413950271DC23 100.59 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 73720 FW STE 100A43514005104195 700066496069DC23 870.73 02/01/202402001962 SOUTHERN CALIFORNIA EDISONW1 72559 Hwy 111 Unit A43698005104195 700044643888DC23 572.82 02/01/202402001963 T-MOBILE USA INCW1 Sheriff Area Dump43042001104210 9556673796 100.00 02/01/202402001963 T-MOBILE USA INCW1 Sheriff GPS Locate43042001104210 9555605215 125.00 02/01/202402001963 T-MOBILE USA INCW1 Sheriff's Area Dump43042001104210 9556138531 50.00 02/01/202402001964 THE RETAIL COACH LLCW1 Retail Mkt Analysis - Instll 243090001104430 5120 4,583.33 02/01/202402001965 TOOLS FOR TOMORROWW1 J. Harnik Tools for Tom. 2/2643886001104800 12224 250.00 02/01/202402001966 VERIZON WIRELESS SERVICES LLCW1 T230330103 Sheriff Loc. Use43042001104210 9022330046 135.00 02/01/202402001966 VERIZON WIRELESS SERVICES LLCW1 T232780105 Sheriff Tower Dump43042001104210 9022337537 330.00 02/01/2024Report Date 14Page City and Housing DocuSign Envelope ID: 0F4317C9-C321-4E80-B5D8-9C68A9F4B335 Page 80 of 1128 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 2/1/2024 - 2/1/2024 City of Palm Desert Account Number 02/01/202402001967 WATERLINE TECHNOLOGIES INCW1 CHEMICALS - AQUATIC CENTER42111002424549 5667921 1,350.22 02/01/202402001967 WATERLINE TECHNOLOGIES INCW1 CHEMICALS - AQUATIC CENTER42111002424549 5668634 753.82 02/01/202402001968 WRIGHT, BARBARAW1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 218.36 02/01/202402001969 XEROX FINANCIAL SERVICESW1 Xerox 3TX403772 12-1/29 Lease43420001104190 5249676 191.98 02/01/202402001970 XPRESS GRAPHICSW1 Printing / Duplicating43610004364650 24-59164 27.22 02/01/202402001970 XPRESS GRAPHICSW1 Step and repeat banner43610001104417 24-59062 362.18 02/01/202402001971 YRIGOYEN, DAVID L.W1 RETIREE HEALTH STIPEND FEB 2441190005764192 2/2/2024 554.47 Examined and Approved Total For Bank ID - W1 672,602.07City Manager Examined and Approved Mayor or Mayor Pro-Tem Audited and Found Correct Director of Finance 02/01/2024Report Date 15Page City and Housing DocuSign Envelope ID: 0F4317C9-C321-4E80-B5D8-9C68A9F4B335 Page 81 of 1128 Page 82 of 1128 CITY OF PALM DESERT CITY CLERK DEPARTMENT INTEROFFICE MEMORANDUM To: From: Date: BUILDING AND SAFETY DIVISION AND PLANNING DIVISION MICHELLE NANCE, DEPUTY CITY CLERK Subject: APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE(S) BY: _____________________________________________________ A copy of the subject ABC License Application is attached for your review and recommendation to the City Council or to another department(s) for further action. A response is required. Please mark the appropriate response below and return to my office by __________________________ Responding Department: __________________________ Date: ________________ Response: No comment – okay to present to City Council. Refer to ______________________________________ - related comments (attach additional sheets, if necessary): _________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ Other – Additional comments (attach additional sheets, if necessary): _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ RJHS Gas & Food Store, Inc. ARCO AMPM 73980 HWY 111, Palm Desert, CA 92260-4004 Tuesday, January 30, 2024. January 25, 2024Building and Safety 4 January 23, 2024 Page 83 of 1128 CITY OF PALM DESERT CITY CLERK DEPARTMENT INTEROFFICE MEMORANDUM To: From: Date: BUILDING AND SAFETY DIVISION AND PLANNING DIVISION , CITY CLERK Subject: APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE(S) BY: _____________________________________________________ A copy of the subject ABC License Application is attached for your review and recommendation to the City Council or to another department(s) for further action. A response is required. Please mark the appropriate response below and return to my office by __________________________ Responding Department: __________________________ Date:_______________ Response: No comment – okay to present to City Council. Refer to ______________________________________ related comments (attach additional sheets, if necessary): _________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ Other – Additional comments (attach additional sheets, if necessary): _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ RJHS Gas & Food Store, Inc. ARCO AMPM 73980 HWY 111, Palm Desert, CA 92260-4004 Tuesday, January 30, 2024. January 23, 2024Development Services: Planning January 23, 2024 Page 84 of 1128 Department of Alcoholic Beverage Control State of California APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE ABC 2 11 (6/99 ) TO:Departme nt of Alcoholic Beverage Control 34-160 GATEWAY DR. STE 120 PALM DESERT, CA 92211 (760) 324-2027 DISTRICT SERVING LOCATION : PALM DESERT File Number: 655842 R eceipt Number: 2862820 G eograp hical Code: 3318 Copies Mailed D ate: January 16, 2024 Issue d Date: First Owner: Name of Bu s ine ss : RJHS GAS & FOOD STORE, INC ARCOAMPM Location of Busi ne ss : County Is Premi ses inside city limits Mailin g Address:(If different from premi ses ad dr ess) Type of lic ense(s): 73980 HIGHWAY 111 PALM DESERT, CA 92260-4004 RIVERSIDE Yes Census Tract: 0451.27 20 Dropping Pa1in er: Yes No Transferor's license/nam e: 473291 / SAINI BROTHERS INC License Type 20 -Off-S a le Bee r And Win e License Type Applic ati on Fee Applic ati on Fee Appl icati on Fee 20 -Off-S ale Bee r And Win e Tran saction Type PER Transaction De scription FED ERA L Fl GERPRTNTS ST A TE FINGE RPRTNTS PER SON TO PERSO N TRF ANNUA L FEE Have you ever be en convicted of a fe lon y? No Master y Fee Code A NA A NA Secondary LT And Coun1 Dup D ate Fee 2 01 /16/24 $4 8.00 2 0 1/1 6/24 $78 .00 0 01 /1 7/24 $395 .00 0 01 /1 7/24 $470 .00 Total $99 l.00 Have you e ver violated any pro visions of the Alcoho li c B everage Control Act, or re gul ations of the Dep artment pertaining to the Act? No STATE OF CALIFORNIA County of RIV E RSID E Date : January 16 , 2024 Applicant Name(s) RJHS GAS & FOOD STORE, INC QI) Page 85 of 1128 Page 86 of 1128 Page 1 of 1 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 15, 2024 PREPARED BY: Michelle Nance, Deputy Clerk I REQUEST: ADOPTION OF ORDINANCE NO. 1407 REPEALING SECTION 2.38.050 OF CHAPTER 2.38 (“GENERAL MUNICIPAL ELECTIONS”) OF TITLE 2 (“ADMINISTRATION AND PERSONNEL”) OF THE PALM DESERT MUNICIPAL CODE RECOMMENDATION: Adopt Ordinance No. 1407 entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, REPEALING SECTION 2.38.050 OF CHAPTER 2.38 (“GENERAL MUNICIPAL ELECTIONS”) OF TITLE 2 (“ADMINISTRATION AND PERSONNEL”) OF THE PALM DESERT MUNICIPAL CODE IN ORDER TO ELIMINATE RANKED CHOICE VOTING FOR THE ELECTION OF MEMBERS OF THE CITY COUNCIL ” BACKGROUND/ANALYSIS: On January 25, 2024, the City Council unanimously introduced Ordinance No. 1407 for first reading. This report provides for the City Council to waive further reading and adopt the ordinance. The ordinance shall be effective 30 days from adoption. FINANCIAL IMPACT: There is no direct financial impact with this action. ATTACHMENT: Ordinance No. 1407 Page 87 of 1128 Page 88 of 1128 ORDINANCE NO. 1407 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, REPEALING SECTION 2.38.050 OF CHAPTER 2.38 (“GENERAL MUNICIPAL ELECTIONS”) OF TITLE 2 (“ADMINISTRATION AND PERSONNEL”) OF THE PALM DESERT MUNICIPAL CODE TO IN ORDER TO ELIMINATE RANKED CHOICE VOTING FOR THE ELECTION OF MEMBERS OF THE CITY COUNCIL WHEREAS, on June 5, 2019, two plaintiffs, represented by attorney Kevin Shenkman and other legal counsel, filed a lawsuit against the City alleging a violation of the California Voting Rights Act (CVRA) based on the City’s use of an at -large election system for City Council members; and WHEREAS, while the City did not believe that its at-large election system violated the CVRA, due to the low threshold of proof required by the CVRA, the unanimously unsuccessful efforts by California cities to defend against such lawsuits to date, and the considerable cost of defending such lawsuits, the City decided to settle the case with Mr. Shenkman and his clients; and WHEREAS, on December 12, 2019, the City and the plaintiffs announced a settlement of the lawsuit, the principal elements of the settlement being as follows: • A two-district election system was approved as outlined in the Court-approved electoral district map. District 1 would represent the “Civic Center District” (approximately 20% of the City’s total population) and elect one member to the City Council. District 2 (the “Outer District”) would represent the remainder of the City (approximately 80% of the City’s total population) and elect the other four members to the City Council. • The City would implement ranked choice voting (RCV) for City Council elections at the November 2020 General Municipal Election or the earliest practicable election date. • The City is prohibited for 10 years from conducting any further at-large elections except as set forth above. However, this shall not preclude the Council from adopting a five single-member district electoral system in accordance with applicable law. WHEREAS, in early 2020, the City followed the public hearing, outreach and input procedure set forth in AB 350 and, pursuant to the legal authority in Government Code sections 34871 and 34886, adopted Ordinance No. 1356 on May 14, 2020, approving a two-district electoral map that transitioned the City from an entirely at-large system and which established RCV. WHEREAS, at the November 2020 General Municipal Election, the City elected one Council member from District 1 and two Council members from District 2. The City was unable to conduct RCV at that time due to timing and logistics issues caused by the COVID -19 pandemic; and WHEREAS, at that November 2022 General Municipal Election, the City elected two Council members from District 2 and held its first election by RCV; and Page 89 of 1128 Ordinance No. 1407 Page 2 WHEREAS, the City Council finds that conducting RCV in the November 2022 General Municipal Election resulted in substantial voter confusion and misunderstanding, and did not serve the City’s residents well during the time of the Election; and WHEREAS, based upon this, the City Council desires to repeal RCV in the City for future Council elections; and WHEREAS, as part of discussions with Mr. Shenkman and his clients, they and the City have agreed that, under the CVRA settlement agreement, the City is permitted to transition to a five-district electoral system and, after doing so, is no longer obligated to maintain RCV for the City’s election system; and WHEREAS, after following the public hearing, outreach and input procedure set forth in State Elections Code for redistricting, and pursuant to the legal authority in Government Code sections 34871 and 34886, the City Council adopted Ordinance No. 1406 on January 25, 2024, approving a transition from a two-district electoral system to a five-district electoral system for City Council members, starting with the November 5, 2024, General Municipal Election; and WHEREAS, the City Council has satisfied all other prerequisites to adoption of this Ordinance repealing RCV in future City of Palm Desert City Council elections. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1. REPEAL OF MUNICIPAL CODE SECTION. Section 2.38.050 of Chapter 2.38 of Title 2 of the Palm Desert Municipal Code pertaining to ranked choice voting (RCV) is hereby repealed in its entirety. SECTION 2. SEVERABILITY. If any section, subsection, subdivision, sentence, or clause or phrase in this Ordinance or any part thereof is for any reason held to be unconstitutional, invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases are declared unconstitutional, invalid, or ineffective. SECTION 3. EFFECTIVE DATE. This Ordinance shall become effective thirty (30) days from its adoption. SECTION 4. PUBLICATION. The City Clerk shall certify the adoption of this Ordinance and cause it, or a summary of it, to be published in a newspaper of general circulation printed and published within the City of Palm Desert, pursuant to all legal requirements. Page 90 of 1128 Ordinance No. 1407 Page 3 ADOPTED ON _________________ 2024. KARINA QUINTANILLA MAYOR ATTEST: ANTHONY J. MEJIA CITY CLERK I, Anthony J. Mejia, City Clerk of the City of Palm Desert, California, do hereby certify that Ordinance No. 1407 is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Desert City Council on January 25, 2024, and adopted at a regular meeting of the City Council held on __________, 2024, by the following vote: AYES: NOES: ABSENT: ABSTAIN: RECUSED: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on ____________________. ANTHONY J. MEJIA CITY CLERK Page 91 of 1128 Page 92 of 1128 Page 1 of 1 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 15, 2024 PREPARED BY: Michelle Nance, Deputy Clerk I REQUEST: ADOPTION OF ORDINANCE NO. 1408 ADDING CHAPTER 2.74 TO TITLE 2 OF THE PALM DESERT MUNICIPAL CODE, ESTABLISHING A MUNICIPAL LIBRARY FOR THE CITY, AND MAKING A FINDING OF EXEMPTION UNDER CEQA RECOMMENDATION: Adopt Ordinance No. 1408 entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ADDING CHAPTER 2.74 TO TITLE 2 OF THE PALM DESERT MUNICIPAL CODE, ESTABLISHING A MUNICIPAL LIBRARY FOR THE CITY, AND MAKING A FINDING OF EXEMPTION UNDER CEQA” BACKGROUND/ANALYSIS: On January 25, 2024, the City Council unanimously introduced Ordinance No. 1408 for first reading. This report provides for the City Council to waive further reading and adopt the ordinance. The ordinance shall be effective 30 days from adoption. FINANCIAL IMPACT: There is no direct financial impact with this action. ATTACHMENT: Ordinance No. 1408 Page 93 of 1128 Page 94 of 1128 ORDINANCE NO. 1408 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA ADDING CHAPTER 2.74 TO TITLE 2 OF THE PALM DESERT MUNICIPAL CODE, ESTABLISHING A MUNICIPAL LIBRARY FOR THE CITY, AND MAKING A FINDING OF EXEMPTION UNDER CEQA WHEREAS, at its regular meeting on October 12, 2023, the City Council of the City of Palm Desert adopted Resolution No. 2023-047, after conducting a public hearing and providing the required notice pursuant to Education Code section 19100 et seq., approving the City’s withdrawal from the Riverside County Library System (“RCLS”), assuming the provision of library services in the City of Palm Desert, and indicating the City’s intent to establish an independent municipal library; and WHEREAS, pursuant to Resolution No. 2023-047, as of July 1, 2024, or upon the transfer of property, whichever is later, the City of Palm Desert will withdraw from the RCLS and shall assume the responsibility for the provision of library services within the City’s jurisdiction; and WHEREAS, the City is authorized to establish a municipal public library pursuant to Section 101 of the City of Palm Desert Charter, and Article XI, Section 5 of the California Constitution; and WHEREAS, the City Council desires that the Palm Desert Public Library be established as a municipal public library to be operated by the City. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES ORDAIN AS FOLLOWS: SECTION 1. Recitals. The recitals above are each incorporated by reference and adopted as findings by the City Council. SECTION 2. Establishment. The City Council of the City of Palm Desert hereby establishes the Palm Desert Public Library to provide library services directly to the public as a municipal library and directs city staff to take all necessary steps and actions in order to effectuate the transition of the Palm Desert Library from the Riverside County Library System to a municipal library. SECTION 3. Amendment to Code. The Palm Desert Municipal Code is hereby amended by adding Chapter 2.74, Public Library, of Title 2, Administration and Personnel, to read as follows: Section 2.74.010 Public Library Established. The City Council of the City of Palm Desert hereby establishes and provides for Page 95 of 1128 Ordinance No. 1408 Page 2 the regulation and maintenance of a public library in the city to be known as the Palm Desert Public Library. The purpose of this chapter is to ensure that the Palm Desert Public Library provides a quiet, orderly, and safe environment in which people may read, study, use library materials and equipment, and attend programs. Section 2.74.020 Governance and Operation of Library. The city manager or their designee shall direct and control all affairs of the library. The city manager shall cause to be employed a Director of Library Services, and authorize the Director of Library Services to employ such assistants and employees as may be necessary for the proper management of the library, and fix their compensation; provided, however, that prior to such employment, the compensation of the Director of Library Services, assistants and employees shall have been fixed and approved by a majority of the members of the city council voting in favor thereof. Section 2.74.030 Rules and Regulations. The city manager or their designee shall establish the rules of conduct for library patrons. The city manager or their designee may do and perform any and all other acts and things necessary or proper to carry out the provisions of this chapter. Section 2.74.030 Library Fund and Expenditures. A. The legislative body of the city shall annually allocate from the general funds of the city a sum of money, the amount of which shall be determined by the legislative body, which sum, together with all money acquired by gift, devise, bequest or otherwise for the purposes of the library shall be apportioned to a fund to be designated the library fund and be applied to the purposes authorized under this chapter. B. If such payment into the treasury should be inconsistent with the conditions or terms of any such gift, devise, or bequest, the city shall provide for the safety and preservation of the same, and the application thereof to the use of the library, in accordance with the terms and conditions of such gift, devise, or bequest. C. Payments from the fund shall be made in the same manner as provided for the payment of other demands against the city; provided, that all demands on such fund shall be first presented to the city council and approved by it before being ordered paid. Section 2.74.040 Title to Property. The title to all property acquired for the purposes of the library established under this chapter, when not inconsistent with the terms of its acquisition, or otherwise designated, shall vest in the city and, in the name of the city, may be sued for and defended by action at law or otherwise. SECTION 4. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance or any part hereof is for any reason held to be invalid, unconstitutional, or unenforceable by the decision of any court of competent Page 96 of 1128 Ordinance No. 1408 Page 3 jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance or any part thereof. the City Council of the City of Palm Desert hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof, irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases would be declared invalid, unconstitutional, or unenforceable. SECTION 5. CEQA. The City Council finds that this Ordinance is exempt from the provisions of the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines Sections 15060(c)(2) and 15061(b)(3) in that the proposed changes are not anticipated to result in a direct or reasonably foreseeable indirect physical change in the environment, nor will the proposed changes have the potential for causing a significant effect on the environment. SECTION 6. Effective Date. This Ordinance shall take effect thirty (30) days after the date of its passage; and prior to fifteen (15) days after its passage, the City Clerk shall cause a copy of this Ordinance to be published in accordance with the provisions of the law. The City Clerk shall certify the adoption of this Ordinance. ADOPTED ON ___________________, 2024. KARINA QUINTANILLA MAYOR ATTEST: ANTHONY J. MEJIA CITY CLERK Page 97 of 1128 Ordinance No. 1408 Page 4 I, Anthony J. Mejia, City Clerk of the City of Palm Desert, California, do hereby certify that Ordinance No. 1408 is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Desert City Council on January 25, 2024, and adopted at a regular meeting of the City Council held on __________, 20 24, by the following vote: AYES: NOES: ABSENT: ABSTAIN: RECUSED: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on ____________________. ANTHONY J. MEJIA CITY CLERK Page 98 of 1128 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 15, 2024 PREPARED BY: Liberty Urban, Deputy Director of Finance REQUEST: AWARD OF CONTRACT TO LANCE, SOLL & LUNGHARD, LLP (LSL, CPAS) TO PERFORM PROFESSIONAL AUDITING SERVICES FOR THE FISCAL YEARS ENDING JUNE 30, 2024, THROUGH 2026 RECOMMENDATION: 1. Approve a contract to Lance, Soll & Lunghard, LLP (LSL, CPAS) in substantial form to perform professional auditing services for the fiscal years ending June 30, 2024, through 2026 in the amount of $89,082 for the first year, and two subsequent years as outlined in Exhibit C of the contract. 2. Authorize the Finance Director to negotiate other services that may be necessary from time to time in an amount reasonable for such services. 3. Authorize the City Attorney to make any necessary, non-monetary changes to the agreement. 4. Authorize the City Manager to execute the contract and the City Manager or his designee to take any actions necessary to facilitate the contract. BACKGROUND/ANALYSIS: On October 3, 2023, staff issued a Request for Proposals for certified public accounting firms to provide professional auditing services for the fiscal years ending June 30, 2024, through 2028. Five proposals were received and reviewed by staff, and the to p three firms were selected to make a presentation to the Auditing Services Contract subcommittee, which was made up of three staff members and two volunteers from the Finance Committee. The subcommittee concluded that during the interview process, LSL CPAs demonstrated a strong ability to fulfill the contract requirements by illustrating their dedication to recruiting and retaining high-quality professional staff, discussing their commitment to foster a collaborative relationship with city staff, and showcasing their ability to meet ongoing independence requirements while maintaining continuity of service. The original Request for Proposals proposed a five-year contract with two one-year extension options; however, the subcommittee recommended a three-year contract with two one-year extension options. Legal Review: This report has been reviewed by the City Attorney’s office. Appointed Body Recommendation: The Finance Committee reviewed this item at their January 22, 2024, meeting and unanimously recommended the City Council approve the contract as presented. FINANCIAL IMPACT: Page 99 of 1128 City of Palm Desert Award of Auditing Services Contract Page 2 of 2 The City performs an annual audit and funds are budgeted each year for this purpose. The cost is $89,082 for the fiscal year ended June 30, 2024. Subsequent years increase as detai led in Exhibit C of the attached contract. ATTACHMENTS: 1. Professional Services Agreement 2. LSL Technical Proposal 3. LSL Cost Proposal Page 100 of 1128 Contract No. ___________ 1 Revised 07-2023 BBK 72500.00001\32374915.1 CITY OF PALM DESERT PROFESSIONAL SERVICES AGREEMENT 1. Parties and Date. This Agreement is made and entered into this 15th day of February, 2024, by and between the City of Palm Desert, a municipal corporation organized under the laws of the State of California with its principal place of business at 73-510 Fred Waring Drive, Palm Desert, California 92260-2578 (“City”) and LANCE, SOLL & LUNGHARD, a Limited Liability Partnership, with its principal place of business at 203 N. BREA BLVD., STE. 203, BREA, CA 92821 ("Vendor"). The City and Vendor are sometimes individually referred to herein as "Party" and collectively as "Parties." 2. Recitals. 2.1 Project. The City is a public agency of the State of California and is in need of professional services for the following project: Audit Services (hereinafter referred to as “the Project”). 2.2 Consultant. Consultant desires to perform and assume responsibility for the provision of certain professional services required by the City on the terms and conditions set forth in this Agreement. Consultant is duly licensed and has the necessary qualifications to provide such services. 3. Terms. 3.1 Scope of Services and Term. 3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations. 3.1.2 Term. The term of this Agreement shall be from February 15, 2024, to June 30, 2026, with two optional one-year extensions at the City’s discretion, unless earlier terminated as provided herein. Contractor shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines. 3.2 Responsibilities of Consultant. 3.2.1 Independent Contractor; Control and Payment of Subordinates. The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods, and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee. Any personnel performing the Services shall not be employees of City and shall at all times be under Consultant's exclusive direction and control. Neither City, or any of its officials, officers, directors, employees, or agents shall have control over the conduct of Consultant or any of Consultants officers, employees or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be Page 101 of 1128 Contract No. ___________ 2 Revised 07-2023 BBK 72500.00001\32374915.1 responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. 3.2.2 Schedule of Services. Consultant shall perform the Services in a prompt and timely manner in accordance with the Schedule of Services set forth in Exhibit "B" attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services expeditiously. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services. 3.2.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City. 3.2.4 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. The key personnel for performance of this Agreement are as follows: Ryan Domino, Partner. 3.2.5 City's Representative. The City hereby designates Veronica Chavez, Finance Director, or his/her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement ("City's Representative"). City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant but not the authority to enlarge the scope of Services or change the total compensation due to Consultant under this Agreement. The City Manager shall be authorized to act on City's behalf and to execute all necessary documents which enlarge the scope of services or change the Consultant's total compensation subject to the provisions contained in Section 3.3 of this Agreement. Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee. 3.2.6 Consultant's Representative. Consultant hereby designates Ryan Domino, or his/her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement. 3.2.7 Coordination of Services. Consultant agrees to work closely with City staff in the performance of Services and shall be available to City's staff, consultants, and other staff at all reasonable times. 3.2.8 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such Page 102 of 1128 Contract No. ___________ 3 Revised 07-2023 BBK 72500.00001\32374915.1 licenses and approvals shall be maintained throughout the term of this Agreement. Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant's failure to comply with the standard of care provided herein. Any employee of the Consultant or its sub-consultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project. 3.2.9 Period of Performance. Consultant shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above (“Performance Time”). Consultant shall also perform the Services in strict accordance with any completion schedule or Project milestones described in Exhibits “A” or “B” attached hereto, or which may be separately agreed upon in writing by the City and Consultant (“Performance Milestones”). Consultant agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such Performance Milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage. Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non-performing Party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that materially affects a Party’s performance and is one or more of the following: (1) Acts of God or other natural disasters; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the services); (4) strikes and other organized labor action occurring at the site and the effects thereof on the services, only to the extent such strikes and other organized labor action are beyond the control of Consultant and its subcontractors, and to the extent the effects thereof cannot be avoided by use of replacement workers; and (5) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of a public agency applicable to the services and Agreement. Should a Force Majeure Event occur, the non-performing Party shall, within a reasonable time of being prevented from performing, give written notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. Force Majeure Events and/or delays, regardless of the Party responsible for the delay, shall not entitle Consultant to any additional compensation. Notwithstanding the foregoing in this section, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement. 3.2.10 Laws and Regulations; Employee/Labor Certification. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with the Services and this Agreement. All violations of such laws and regulations shall be grounds for the City to terminate the Agreement for cause. 3.2.10.1 Employment Eligibility; Consultant. Consultant certifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time and shall require all Page 103 of 1128 Contract No. ___________ 4 Revised 07-2023 BBK 72500.00001\32374915.1 subconsultants and sub-subconsultants to comply with the same. Consultant certifies that it has not committed a violation of any such law within the five (5) years immediately preceding the date of execution of this Agreement and shall not violate any such law at any time during the term of the Agreement. 3.2.10.2 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer, and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, physical disability, ancestry, sex, age, marital status, gender, gender identity, gender expression, sexual orientation, reproductive health decision making, veteran or military status, or any other consideration made unlawful by federal, state, or local laws. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted. 3.2.10.3 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. 3.2.11 Insurance. 3.2.11.1 Minimum Requirements. Without limiting Consultant’s indemnification of City, and prior to commencement of the Services, Consultant shall obtain, provide, and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form that is satisfactory to City. (A) General Liability Insurance. Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. (B) Automobile Liability Insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non- owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. The City’s Risk Manger may modify this requirement if it is determined that Consultant will not be utilizing a vehicle in the performance of his/her duties under this Agreement. (C) Professional Liability (Errors & Omissions) Insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three years after completion of the Services required by this Agreement. Page 104 of 1128 Contract No. ___________ 5 Revised 07-2023 BBK 72500.00001\32374915.1 (D) Workers’ Compensation Insurance. Consultant shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). Consultant shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its officers, agents, employees, volunteers, and representatives. (E) Umbrella or Excess Liability Insurance. Consultant may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Consultant shall obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer’s liability. Such policy or policies shall include the following terms and conditions: (1) A drop-down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; (2) Pay on behalf of wording as opposed to reimbursement; (3) Concurrency of effective dates with primary policies; and (4) Policies shall “follow form” to the underlying primary policies. (5) Insureds under primary policies shall also be insureds under the umbrella or excess policies. (F) Fidelity Coverage. Consultant shall provide evidence of fidelity coverage on a blanket fidelity bond or other acceptable form. Limits shall be no less than $1,000,000 per occurrence. (G) Cyber Liability Insurance. [Reserved] If coverage is maintained on a claims-made basis, Consultant shall maintain such coverage for an additional period of three (3) years f ollowing termination of the Agreement. 3.2.11.2 Other Provisions or Requirements. (A) Proof of Insurance. Consultant shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time. (B) Duration of Coverage. Consultant shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Services hereunder by Consultant, his/her agents, representatives, employees or subconsultants. Page 105 of 1128 Contract No. ___________ 6 Revised 07-2023 BBK 72500.00001\32374915.1 (C) Primary/Non-Contributing. Coverage provided by Consultant shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City’s own insurance or self - insurance shall be called upon to protect it as a named insured. (D) City’s Rights of Enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications, or is canceled and not replaced, City has the right, but not the duty, to obtain the insurance it deems necessary, and any premium paid by City will be promptly reimbursed by Consultant, or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may terminate this Agreement. (E) Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager. (F) Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City, its elected or appointed officers, agents, officials, employees, volunteers, and representatives or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against the City, its elected or appointed officers, agents, officials, employees, volunteers and representatives and shall require similar written express waivers and insurance clauses from each of its subconsultants. (G) Enforcement of Contract Provisions (non estoppel). Consultant acknowledges and agrees that any actual or alleged failure on t he part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. (H) Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. (I) Notice of Cancellation. Consultant agrees to oblige its insurance agent or broker and insurers to provide City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. Page 106 of 1128 Contract No. ___________ 7 Revised 07-2023 BBK 72500.00001\32374915.1 (J) Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability and cyber liability, policies shall provide or be endorsed to provide that the City and its officers, officials, employees, agents, volunteers and representatives shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement, under such policies. This provision shall also apply to any excess/umbrella liability policies. (K) Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. (L) Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. (M) Pass Through Clause. Consultant agrees to ensure that its subconsultants, subcontractors, and any other party involved with the Project who is brought onto or involved in the Project by Consultant, provide the same minimum insurance coverage and endorsements required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with th e requirements of this section. Consultant agrees that upon request, all agreements with subconsultants, subcontractors, and others engaged in the Project will be submitted to City for review. (N) City’s Right to Revise Specifications. The City and the City’s Risk Manager reserve the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in additional cost to the Consultant, the City and Consultant may renegotiate Consultant’s compensation. If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice. (O) Self-Insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City. (P) Timely Notice of Claims. Consultant shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. (Q) Additional Insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Services. 3.3 Fees and Payments. 3.3.1 Compensation. Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “C” attached hereto and incorporated herein by reference. The total compensation shall Page 107 of 1128 Contract No. ___________ 8 Revised 07-2023 BBK 72500.00001\32374915.1 not exceed EIGHTY-NINE THOUSAND, EIGHTY-TWO DOLLARS ($89,082.00) for the first year, NINETY-ONE THOUSAND, SEVEN HUNDRED FIFTY-FIVE DOLLARS ($91,755.00) for the second year and NINETY-FOUR THOUSAND, FIVE HUNDRED SEVEN DOLLARS ($94,507.00) for the third year, without written approval of the City Council or City Manager, as applicable. Compensation for additional optional years of service is set forth in Exhibit “C.” 3.3.2 Payment of Compensation. Consultant shall submit to City invoices which provide a detailed description of the Services and hours rendered by Consultant. City shall, within 30 days of receiving such invoice, review the invoice and pay all non-disputed and approved charges. If the City disputes any of Consultant's fees, the City shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth therein. Consultant shall submit its final invoice to City within thirty (30) days from the last date of provided Services or termination of this Agreement and failure by the Consultant to submit a timely invoice may constitute a waiver of its right to final payment. Payment shall not constitute acceptance of any Services completed by Consultant. The making of final payment shall not constitute a waiver of any claims by the City for any reason whatsoever. 3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City or included in Exhibit "C" of this Agreement. 3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City. 3.4 Labor Code Requirements. 3.4.1 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code and agrees to comply with such provisions before commencing the performance of the Services. 3.5 Accounting Records. 3.5.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 3.6 General Provisions. 3.6.1 Termination of Agreement. 3.6.1.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, Page 108 of 1128 Contract No. ___________ 9 Revised 07-2023 BBK 72500.00001\32374915.1 at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those Services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause. The rights and remedies of the City provided in this section shall not be exclusive and are in addition to any other rights and remedies provided by law, equity or under this Agreement. 3.6.1.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all final Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such documents and other information within fifteen (15) days of the request. The City may place a written request for Unfinished Documents and Data, such as working papers and draft deliverables, which may be provided at the Consultant’s discretion pursuant to AICPA professional standards. 3.6.1.3 Early Termination. Notwithstanding any provision herein to the contrary, if for any fiscal year of this Agreement the City Council fails to appropriate or allocate funds for future payment under the Agreement after exercising reasonable efforts to do so, the City may upon seven (7) days’ written notice, order work on the Project to cease. Upon termination, Consultant shall be compensated only for those Services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. 3.6.1.4 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. 3.6.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose: Consultant: Lance, Soll & Lunghard, LLP 203 N. Brea Blvd., Ste. 203 Brea, CA 92821 ATTN: Ryan Domino, CPA, Partner City: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 ATTN: Veronica Chavez, Finance Department Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 3.6.3 Ownership of Materials and Confidentiality. 3.6.3.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in Page 109 of 1128 Contract No. ___________ 10 Revised 07-2023 BBK 72500.00001\32374915.1 any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). All final Documents & Data shall be and remain the property of City and shall not be used in whole or in substantial part by Consultant on other projects without the City’s express written permission. This does not include working papers, draft documents or other draft deliverables, which remain the property of the Consultant pursuant to AICPA professional standards. Upon City request, Consultant may provide a copy of such working papers, draft documents, or other draft deliverables at their discretion.Within thirty (30) days following the completion, suspension, abandonment or termination of this Agreement, Consultant shall provide to City reproducible copies of all final Documents & Data, in a form and amount required by City. City reserves the right to select the method of document reproduction and to establish where the reproduction will be accomplished. The reproduction expense shall be borne by City at the actual cost of duplication. In the event of a dispute regarding the amount of compensation to which the Consultant is entitled under the termination provisions of this Agreement, Consultant shall provide all final Documents & Data to City upon payment of the undisputed amount. Consultant shall have no right to retain or fail to provide to City any such documents pending resolution of the dispute. In addition, Consultant shall retain copies of all final Documents & Data on file for a minimum of fifteen (15) years following completion of the Project and shall make copies available to City upon the payment of actual reasonable duplication costs. Before destroying the final Documents & Data following this retention period, Consultant shall make a reasonable effort to notify City and provide City with the opportunity to obtain the documents. 3.6.3.2 Subconsultants. Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by professionals other than Consultant or its subconsultants, or those provided to Consultant by the City. 3.6.3.3 Right to Use. City shall not be limited in any way in its use or reuse of the Documents and Data or any part of them at any time for purposes of this Project or another project, provided that any such use not within the purposes intended by this Agreement or on a project other than this Project without employing the services of Consultant shall be at City’s sole risk. If City uses or reuses the Documents & Data on any project other than this Project, it shall remove the Consultant’s seal from the Documents & Data and indemnify and hold harmless Consultant and its officers, directors, agents, and employees from claims arising out of the negligent use or re-use of the Documents & Data on such other project. Consultant shall be responsible and liable for its Documents & Data, pursuant to the terms of this Agreement, only with respect to the condition of the Documents & Data at the time they are provided to the City upon completion, suspension, abandonment, or termination. Consultant shall not be responsible or liable for any revisions to the Documents & Data made by any party other than Consultant, a party for whom the Consultant is legally responsible or liable, or anyone approved by the Consultant. 3.6.3.4 Indemnification – Documents and Data. Consultant shall defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers, agents and representatives free and harmless, pursuant to the indemnification provisions of this Agreement, for any alleged infringement of any patent, copyright, trade secret, trade name, trademark, or any other proprietary right of any person or entity in consequence of the use on the Page 110 of 1128 Contract No. ___________ 11 Revised 07-2023 BBK 72500.00001\32374915.1 Project by City of the Documents & Data, including any method, process, product, or concept specified or depicted. 3.6.3.5 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City. 3.6.3.6 Confidential Information. The City shall refrain from releasing Consultant’s proprietary information ("Proprietary Information") unless the City's legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall notify Consultant of its intention to release Proprietary Information. Consultant shall have five (5) working days after receipt of the release notice to give City written notice of Consultant's objection to the City's release of Proprietary Information. Consultant shall indemnify, defend, and hold harmless the City, and its officers, directors, employees, agents, volunteers and representatives from and against all liability, loss, cost or expense (including attorney’s fees) arising out of a legal action brought to compel the release of Proprietary Information. City shall not release the Proprietary Information after receipt of an objection notice unless either: (1) Consultant fails to fully indemnify, defend (with City's choice of legal counsel), and hold City harmless from any legal action brought to compel such release; and/or (2) a final and non-appealable order by a court of competent jurisdiction requires that City release such information. 3.6.4 Cooperation; Further Acts. The Parties shall fully cooperate with one another and shall take any additional acts or sign any additional documents as may be necessary, appropriate, or convenient to attain the purposes of this Agreement. 3.6.5 [Reserved] 3.6.6 Indemnification. 3.6.6.1 To the fullest extent permitted by law, City shall defend, indemnify and hold the Consultant, its officials, officers, employees, volunteers, agents, and representatives free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to misrepresentations by City management related to this Agreement, including without limitation the payment of all expert witness fees, attorney’s fees and other related costs and expenses except such loss or damage caused by the negligence or willful misconduct of the Consultant. City's obligation to indemnify shall survive expiration or termination of this Agreement and shall not be restricted to insurance proceeds, if any, received by City, its officials, officers, employees, agents, volunteers, or representatives. Page 111 of 1128 Contract No. ___________ 12 Revised 07-2023 BBK 72500.00001\32374915.1 3.6.6.2 If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault. 3.6.7 Entire Agreement. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings, or agreements. 3.6.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Riverside County. 3.6.9 Time of Essence. Time is of the essence for each and every provision of this Agreement. 3.6.10 City's Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project. 3.6.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the Parties. 3.6.12 Assignment; Subcontracting. Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Consultant shall not subcontract any portion of the Services required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. 3.6.13 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not workdays. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, volunteers, and representatives except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement. 3.6.14 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties. 3.6.15 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise. Page 112 of 1128 Contract No. ___________ 13 Revised 07-2023 BBK 72500.00001\32374915.1 3.6.16 No Third-Party Beneficiaries. There are no intended third-party beneficiaries of any right or obligation assumed by the Parties. 3.6.17 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.6.18 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid, nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer, or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. 3.6.19 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party. 3.6.20 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original. 3.6.21 Survival. All rights and obligations hereunder that by their nature are to continue after any expiration or termination of this Agreement, including, but not limited to, the indemnification obligations, shall survive any such expiration or termination. [SIGNATURES ON NEXT PAGE] Page 113 of 1128 Contract No. ___________ 14 Revised 07-2023 BBK 72500.00001\32374915.1 SIGNATURE PAGE TO PROFESSIONAL SERVICES AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT AND LANCE, SOLL & LUNGHARD, LLP. IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on the day and year first above written. CITY OF PALM DESERT By: L. Todd Hileman, City Manager Attest: By: Anthony Hernandez City Clerk Approved as to form: By: Isra Shah Best Best & Krieger LLP City Attorney LANCE, SOLL & LUNGHARD, A LIMITED LIABILITY PARTNERSHIP By: Its: Printed Name: Ryan Domino, CPA, Partner Page 114 of 1128 Contract No. ___________ Exhibit “A” Revised 07-2023 BBK 72500.00001\32374915.1 EXHIBIT “A” SCOPE OF SERVICES PROVIDE AUDITING SERVICES TO THE CITY OF PALM DESERT FOR ITS FINANCIAL REPORT FOR THE FISCAL YEARS ENDING JUNE 30, 2024 THROUGH 2026. Page 115 of 1128 Contract No. ___________ Exhibit “B” Revised 07-2023 BBK 72500.00001\32374915.1 EXHIBIT "B" SCHEDULE OF SERVICES Completion Date* Description of Tasks April/May An entrance conference will be held before interim testing begins in April/May. Late September/Early October Year-end testing begins in late September/early October, exit conference held on the last day of fieldwork Late October/Early November Draft audit letters and other reports provided to the City in late October The City will provide the draft ACFR to LSL in late October/early November December Final reports and approval delivered by December 15th, with bound copies delivered by January 5th January Delivery of financial statements and presentation of financials LSL will be available as requested to present the results of the financial audit *These dates may be modified to accommodate scheduling if mutually agreed upon by both parties. Page 116 of 1128 Contract No. ___________ Exhibit “C” Revised 07-2023 BBK 72500.00001\32374915.1 EXHIBIT "C" COMPENSATION All-Inclusive Maximum Price by Report Optional Optional Optional Report 2023/24 2024/25 2025/26 2026/27 2027/28 Financial Statements $78,450 $80,804 $83,228 $85,725 $88,297 Single Audit* $7,370 $7,591 $7,819 $8,054 $8,296 Palm Desert Recreational Facilities Corporation Audit $12,570 $12,947 $13,335 $13,735 $14,147 Gann Limit Verifications $590 $608 $626 $645 $664 Out-of-Pocket Expenses Included Included Included Included Included Subtotal for Fiscal Year $98,980 $101,950 $105,008 $108,159 $111,404 Current Client Discount (10%) ($9,898) ($10,195) ($10,501) ($10,816) ($11,140) Total for Fiscal Year (Not-to-Exceed) $89,082 $91,755 $94,507 $97,343 $100,264 *Price includes one (1) major program. Each additional program is $3,500. Page 117 of 1128 Page 118 of 1128 PREPARED BY Lance, Soll & Lunghard, LLP Certified Public Accountants License Number 2584 TECHNICAL PROPOSAL City of Palm Desert Professional Auditing Services RFP No. 2023-RFP-213 Date of Submission: November 9, 2023 Valid for 90 Days Authorized by Ryan Domino, CPA, Partner Ryan.Domino@lslcpas.com 203 N. Brea Blvd., Suite 203 Brea, CA 92821 Attachment 1 Page 119 of 1128 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 1 www.lslcpas.com | 1 COVER LETTER November 9, 2023 John Ramont, Deputy Director City of Palm Desert, Finance Department 73-510 Fred Waring Drive Palm Desert, CA 92260 Dear Mr. Ramont, LANCE, SOLL & LUNGHARD, LLP (“LSL”) is pleased to present our proposal for professional auditing services and demonstrate our continued commitment to excellence to the City of Palm Desert (“City”). This proposal highlights our firm’s strength and stability, outlining our demonstrated experience, knowledge, and creative problem-solving capabilities as a leader in the field of governmental auditing. With our comprehensive government experience and our history with the City, we believe you will continue to find that LSL is the best-qualified accounting firm for the City. We understand that the City of Palm Desert is seeking a qualified firm to provide financial audit services, including related services, covering an initial term of five (5) years, beginning with the audit of the 2023-24 fiscal year, with the potential option to extend the contract for three (3) additional one-year terms through 2031. We affirm that our proposal fully aligns with all terms, conditions, and requirements stated in the RFP released on October 3, 2023. Ryan Domino is the assigned Engagement Partner for this proposal. He is authorized to make representations on behalf of our firm and can be reached by phone at (714) 672-0022 or by email at Ryan.Domino@lslcpas.com. We welcome the opportunity to discuss any aspect of our proposal to ensure your complete satisfaction. Please contact Ryan for any clarification or contract negotiations regarding this proposal. Sincerely, Ryan Domino, CPA, Partner Lance, Soll & Lunghard, LLP 203 N. Brea Blvd., Suite 203 Brea, CA 92821 Page 120 of 1128 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 2 www.lslcpas.com | 2 TABLE OF CONTENTS COVER LETTER ...................................................................................................................................... 1 TABLE OF CONTENTS ........................................................................................................................... 2 EXPERIENCE & TECHNICAL COMPETENCE ....................................................................................... 3 Firm History & Size ................................................................................................................................ 3 Location ................................................................................................................................................. 3 License to Practice in California ............................................................................................................ 4 Independence ........................................................................................................................................ 4 Government Auditing Standards ........................................................................................................... 4 Desk Review / Disciplinary Action ......................................................................................................... 4 Peer Review .......................................................................................................................................... 4 Similar Engagements with Other Government Entities ......................................................................... 7 Single Audit Experience ........................................................................................................................ 7 GFOA Award Program .......................................................................................................................... 8 REFERENCES ......................................................................................................................................... 8 FIRM STAFFING & KEY PERSONNEL ................................................................................................. 11 Organizational Chart ............................................................................................................................ 11 Engagement Team Resumes .............................................................................................................. 11 LSL Team Resources .......................................................................................................................... 12 PROPOSED METHOD TO ACCOMPLISH THE WORK ....................................................................... 13 LSL’s Understanding of the Scope of Work ......................................................................................... 13 Project Management Methodology ...................................................................................................... 14 Project Timeline ................................................................................................................................... 14 Proposed Work Plan ............................................................................................................................ 15 Proposed Segmentation ...................................................................................................................... 15 Approach to Selecting Sample Sizes .................................................................................................. 17 Type And Extent Of Analytical Procedures ......................................................................................... 17 Drawing Audit Samples for Compliance .............................................................................................. 17 LSL’s Approach to Understanding the City’s Internal Control Structure .............................................. 18 Determining Laws and Regulations Subject To Audit Test Work ........................................................ 18 Working Paper Retention and Access ................................................................................................. 18 Irregularities and Illegal Acts ............................................................................................................... 18 BENEFITS OF WORKING WITH LSL ................................................................................................... 19 Our Core Values .................................................................................................................................. 19 Best of Accounting Award ................................................................................................................... 20 Accounting Today Regional Leader .................................................................................................... 20 Training & Seminars ............................................................................................................................ 20 EXHIBIT A – CURRENT LIST OF MUNICIPAL CLIENTS .................................................................... 21 EXHIBIT B – ENGAGEMENT TEAM RESUMES .................................................................................. 24 Page 121 of 1128 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 3 www.lslcpas.com | 3 EXPERIENCE & TECHNICAL COMPETENCE FIRM HISTORY & SIZE LSL was established in 1929 and has grown as a leader in the government sector. Our full- service accounting firm is headquartered in Brea, California, with a dynamic team of 15 partners and 145 employees. We provide auditing, accounting, and consulting services to over 100 municipal clients, including cities, counties, water and electric utilities, and special-purpose government agencies. Our government sector services encompass a broad range of specialties, including attestation, compliance, consulting, outsourced accounting and reporting, year-end close assistance, interim staffing, strategic planning, and tax services. LOCATION At LSL, we regularly share staff and resources across our offices, providing you with access to our entire governmental team. This approach ensures that you receive the highest level of service and expertise possible, allowing us to deliver optimal results. Page 122 of 1128 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 4 www.lslcpas.com | 4 LICENSE TO PRACTICE IN CALIFORNIA LSL is a public accounting firm licensed by the State of California Department of Consumer Affairs as a Public Accounting Partnership. Additionally, we are members of the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants. All key members assigned to this engagement are licensed or are in the process of obtaining their license as Certified Public Accountants by the State of California. INDEPENDENCE LSL meets the independence requirements set forth by the Government Auditing Standards. Our partners have no ownership in any other business organization that currently or will potentially provide services, supplies, materials, or equipment to the City. We annually distribute a listing of our firm's clients to all employees to ensure that any possible independence threats are properly documented and reviewed. GOVERNMENT AUDITING STANDARDS LSL understands its responsibilities to perform audits and issue opinions on the City’s financial statements as well as its fair presentation. Our financial audits are performed in accordance with the Generally Accepted Government Auditing Standards (GAGAS) issued by the Comptroller General of the United States, and Single Audits are performed in accordance with the requirements of the Uniform Guidance. We will also evaluate the City's internal control system and provide recommendations for growth and improvement. DESK REVIEW / DISCIPLINARY ACTION There have been no disciplinary actions against our organization since its inception. There have been no litigations against our firm in the past three years. Our Single Audit reports are desk reviewed either by the federal cognizant agency or the State Controller’s Office acting as the Oversight Agency. LSL has never had a report rejected by any of these agencies and is highly regarded and recognized by the staff of the State Controller’s Office for top-quality reports. PEER REVIEW Our firm has participated in the AICPA Peer Review Program since its inception. All our peer reviews have covered governmental engagements and have received pass ratings. Our most recent peer review, conducted by Spafford and Landry CPAs, is provided on the following pages. Page 123 of 1128 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 5 www.lslcpas.com | 5 Page 124 of 1128 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 6 www.lslcpas.com | 6 Page 125 of 1128 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 7 www.lslcpas.com | 7 SIMILAR ENGAGEMENTS WITH OTHER GOVERNMENT ENTITIES A current list of municipal clients can be found in Exhibit A, which lists LSL's most significant engagements of comparable complexity, scale, and nature to the scope of services described in this request for proposal performed within the last five (5) years. SINGLE AUDIT EXPERIENCE Our firm has extensive experience in performing Single Audits for local government agencies under the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, Audit Requirements of Federal Awards (Uniform Guidance), and the United States Office of Management and Budget (OMB). Exhibit A includes a list of government audit clients for which a Single Audit has been performed in the last fiscal year. Additionally, the table below highlights recent examples of federal programs audited by LSL. Federal Granting Agency AL # Name of Program U.S. Department of Agriculture 10.557 Special Supplemental Nutrition Program for Women, Infant, and Children U.S. Department of Housing & Urban Development 14.195 Section 8 Housing Assistance Payment Program U.S. Department of Housing & Urban Development 14.218 Community Development Block Grants/Entitlement Grants U.S. Department of Housing & Urban Development 14.228 Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii U.S. Department of Housing & Urban Development 14.239 HOME Investment Partnerships Program U.S. Department of Housing & Urban Development 14.856 Lower Income Housing Assistance Program Section 8 Moderate Rehabilitation U.S. Department of Housing & Urban Development 14.871 Section 8 Housing Choice Vouchers U.S. Department of Transportation 20.106 Airport Improvement Program U.S. Department of Transportation 20.205 Highway Planning and Construction U.S. Department of Transportation 20.507 Federal Transit Formula Grants U.S. Department of Treasury 21.019 Coronavirus Relief Fund (CRF) U.S. Department of Treasury 21.027 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) U.S. Environmental Protection Agency 66.458 Capitalization Grants for Clean Water State Revolving Funds U.S. Department of Health and Human Services 93.563 Child Support Enforcement U.S. Department of Health and Human Services 93.667 Social Services Block Grant U.S. Department of Health and Human Services 93.676 Unaccompanied Alien Children Program U.S. Department of Health and Human Services 93.778 Medical Assistant Program - Medicaid Cluster U.S. Department of Homeland Security 97.036 Disaster Grants- Public Assistance (Presidentially Declared Disasters) U.S. Department of Homeland Security 97.067 Homeland Security Grant Program Page 126 of 1128 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 8 www.lslcpas.com | 8 GFOA AWARD PROGRAM LSL understands the significance of obtaining and maintaining the Certificate of Excellence in Financial Reporting from the GFOA. We have prepared financial statements and footnote disclosures for many of our local government clients who have received this award. Our governmental partners, managers, and seniors are closely involved in the preparation of these reports. Clients currently receiving the GFOA award are also noted in Exhibit A. REFERENCES The following references highlight our experience in providing professional auditing services to other governmental organizations with similar size and scope as the City of Palm Desert. We invite you to contact them to gain insight into our working relationships and quality of service. City of Indio Contact Rob Rockwell, Assistant City Manager/Finance Director E-mail Address RRockwell@indio.org Address 100 Civic Center Mall Indio, CA. 92201 Telephone (760) 391-4029 Dates of Service 2015 – present Scope of Work Audit of the City’s ACFR, which receives the GFOA Award; Single Audit; Measure S AUP; Measure X Audit AUP; AQMD Audit; ERICA Audit; EVRA Audit; AUP over the City’s GANN limit; Indio Water Authority Audit; Landmark Golf AUP Page 127 of 1128 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 9 www.lslcpas.com | 9 City of Oceanside Contact Jill Moya, CPA, Financial Services Director E-mail Address JMoya@oceansideca.org Address 300 N. Coast Hwy. Oceanside, CA 92054 Telephone (760) 435-3887 Dates of Service 2012 – present Scope of Work Audit of the City’s ACFR, which receives the GFOA Award; Single Audit; AUP over the City’s Gann Limit; RDA State Controller’s Report; Building Authority; CDC Audit; Public Financing Authority; Ocean Eleven AUP; REAC Submission AUP; Small Craft Harbor District Audit; Ocean Eleven Casino AUP; OPFA Audit City of Riverside Contact Nancy Garcia, Controller E-mail Address ngarcia@riversideca.gov Address 3900 Main Street Riverside, CA 92522 Telephone (951) 826-5466 Dates of Service 2019 – present Scope of Work Audit of the City’s ACFR, which receives the GFOA Award; Single Audit; audit of the City’s Water and Electric Utilities; audit of the City’s public financing authority’s financial statements; compliance audit and preparation of the City’s AQMD Fund’s financial statements; compliance audit of the City’s Successor Agency; and performance of agreed-upon procedures over the City’s Appropriations Limit Calculation and NTD reporting. Page 128 of 1128 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 10 www.lslcpas.com | 10 City of Fullerton Contact Toni Smart, Fiscal Services Manager E-mail Address Tonette.Smart@cityoffullerton.com Address 303 W. Commonwealth Ave. Fullerton, CA 92832 Telephone (714) 738-6522 Dates of Service 2012 – present Scope of Work Audit of City’s ACFR, which receives the GFOA Award; Single Audit; State Controller’s Report, City; AQMD Audit; Final RDA Audit; AUP Gann Limit; FFMA, FFA, FMEF, FPMA AUP; FMA Labor Costing AUP; POA Labor Costing AUP; Due Diligence Review; Cost Allocation Plan; Firefighters Association Negotiations; and Special Consulting Services Page 129 of 1128 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 11 www.lslcpas.com | 11 FIRM STAFFING & KEY PERSONNEL ORGANIZATIONAL CHART ENGAGEMENT TEAM RESUMES Team resumes are available in Exhibit B, which detail the position of each team member in the firm, their educational background, and their years and types of experience. The resumes also provide information on any continuing education courses taken by the team members during the past three years. Brandon Young, CPA Quality Assurance Partner 13 years of experience Ryan Domino, CPA Engagement Partner 11 years of experience Frank North, CPA Senior Manager 30 years of experience Calvin Kunkel, CPA Audit Manager 9 years of experience Senior Associate Staff Associate Staff Associate Staff Associate Staff Associate Page 130 of 1128 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 12 www.lslcpas.com | 12 Ryan Domino, CPA Engagement Partner Ryan Domino has a strong technical focus and specializes in governmental accounting and auditing. He currently serves as a technical reviewer for the Government Finance Officers Association (GFOA) and regularly presents at our firm’s annual GASB Update and at CSMFO’s chapter meetings where he presents and trains on the latest GASB pronouncements. Ryan is an expert on Single Audit planning and execution and holds advanced certification from the AICPA. Ryan provides our clients with a competitive advantage as a member of GFOA’s Special Review Committee for the Award for Excellence in Financial Reporting and able to provide valuable insights and recommendations to help organizations achieve excellence in financial reporting. Brandon Young, CPA Quality Assurance Partner Brandon is an expert in governmental accounting and auditing and trains our government team on the proper implementation of new GASB pronouncements, ensuring that our clients receive the highest level of service and expertise. Brandon was recently appointed to the AICPA State and Local Government Expert Panel, further demonstrating his expertise in the field. Brandon also serves on the CalCPA Governmental Accounting and Auditing Committee, specific to the State of California, and he is responsible for numerous white papers and technical clarifications, including those for GASB 68, 75, and 87. His contributions to this committee have helped to shape the accounting and auditing practices of government organizations in California. Other key employees who would be assigned to this engagement include Frank North and Calvin Kunkel. The audit team will also consist of Senior Auditor and an additional 3-4 staff associates for audit fieldwork. LSL TEAM RESOURCES LSL will not be subcontracting any portion of the engagement. All staff assigned to the engagement will be employed by LSL on a full-time basis and have extensive experience providing auditing services for cities, counties, and special-purpose government agencies. Our governmental staff consists of three (3) Partners, two (2) Senior Managers, six (6) Managers, three (3) Supervisors, and sixteen (16) Professional Staff. Proposed team members Page 131 of 1128 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 13 www.lslcpas.com | 13 will be available for ninety (90) days from the proposal due date. LSL will promptly notify the City of any changes in key personnel prior to award. Staff Continuity To ensure the quality of our staffing, we have established firm policies that prioritize the continuity of engagement teams, except in cases where an employee has left the firm or has been promoted. In the event of any changes in staffing at the Manager position and above, LSL will first seek written permission from the City. Quality of Staff Assurance LSL is committed to providing the City with a stable and experienced team that is dedicated to delivering a high-quality audit and exceptional service. We understand the importance of maintaining a strong and reliable team throughout the engagement, and we will work closely with the City to ensure that any staffing changes are handled with minimal disruption to the continuity of the engagement. Continuing Education At LSL, we strongly emphasize professional development and continuing education to ensure that our team members are up to date on the latest developments in governmental accounting and auditing. As a firm policy, all LSL government staff are required to complete a minimum of 40 hours of continuing education every year, with at least 24 hours in governmental accounting and auditing in a two-year period. Our educational programs are designed to provide our team members with the knowledge and skills necessary to deliver high-quality services to our clients. We offer a variety of training opportunities, including those provided by CalCPA, AICPA, Government Audit Quality Center, and GFOA. PROPOSED METHOD TO ACCOMPLISH THE WORK LSL’S UNDERSTANDING OF THE SCOPE OF WORK LSL understands that the City of Palm Desert is seeking a qualified firm to perform the City’s financial audit and related services, consisting of the following final financial and compliance reports: 1. City of Palm Desert’s ACFR Financial Audit 2. Palm Desert Recreational Facilities Corporation Audit 3. Single Audit 4. Gann Limit Verifications Page 132 of 1128 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 14 www.lslcpas.com | 14 PROJECT MANAGEMENT METHODOLOGY The LSL team holds itself to a high standard for timely delivery and effective communication of key milestones. We recognize the importance of being responsive and communicative with our clients, and we are committed to being available on a day-to-day basis to address any questions or concerns that may arise throughout the engagement. Areas of concern and potential findings will be communicated to the City as soon as they are discovered to mitigate any surprises throughout the audit. At the beginning of the engagement, we will hold a planning meeting with you to determine the timeline, expectations, and desired outcome of the agreement on the issuance of financial statements. Throughout the process, we will have periodic meetings with you to provide updates and discuss progress. Upon award of contract and per the City’s requested timeline, LSL will work closely with the City to develop an audit plan and timeline to ensure compliance and timely deliverables. As part of the Scope of Work and time requirements, we assume that the City will provide all necessary information needed to complete the financial statement and single audits. We will proactively identify and communicate any pending information from the City that could hinder our ability to complete the objectives of the engagement in a timely manner. PROJECT TIMELINE LSL assumes under the time requirements that the City will have closed its books and will present the LSL team with general ledger balances that are auditable prior to the start of fieldwork. A sample timeline is provided on the following page displaying the key stages of the audit and the deliverables. Page 133 of 1128 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 15 www.lslcpas.com | 15 PROPOSED WORK PLAN At LSL, we use a governmental audit program that will be tailored to the City’s operations to accommodate its specific circumstance and organizational structure. LSL’s audit programs are organized by financial statement category, which we believe is the most effective and efficient approach to substantially reduce the risk of omitting important procedures. Our approach is designed to increase audit efficiency by linking financial statement assertions, audit objectives, and procedures that are basic to most governmental audit engagements. Proposed Segmentation Our audit services will be divided into the three succeeding segments: Segment 1 – Planning and Obtaining an Understanding Segment 2 – Financial Audit Testing Segment 3 – Conclusion Segment 2 Year-end Testing will begin in late September-early October. Exit Conference will be held on the last day of fieldwork. Entrance Conference will be held before interim begins. Segment 1 Interim Testing will begin in April/May. October Segment 3 Draft Audit Letters, and Other Reports will be provided to the City in late October. The City will provide the Draft ACFR to LSL in late October or early November. Final Reports and Approval will be delivered by December 15th with bound copies delivered by January 5th. Delivery of Financial Statements and Presentation of Financials - LSL will be available as requested to present the results of the financial audit. December/January September April/May Page 134 of 1128 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 16 www.lslcpas.com | 16 Segment 1 – Planning and Obtaining an Understanding LSL will provide an annual audit communication letter, engagement letter, and Government Audit Quality Center Information letter. The audit communication letter is to be provided to the City Council and/or Board of Directors and can be communicated orally to those charged with governance, if requested, where we will discuss planning stages, responsibilities of the City Council and/or Board of Directors, Auditors, and Management, and provide an opportunity to communicate with us as the auditors. An entrance conference will be scheduled prior to the agreed-upon week of interim testing to ensure that the transition to new auditors is as seamless as possible. Discussions in this meeting include, but are not limited to, an understanding of reports and key milestones for deliverables, prior audit reportable conditions and issues, and “Prepared by Client” (PBC) schedules. A trial balance is requested for our planning meeting to assist the LSL team in obtaining knowledge of economic conditions, industry elements, and new standards that may affect the City. We will compile a list of PBC items based on our review of the prior year's financial statements and the gathered information that will be provided to the City one month prior to testing or earlier if requested. We operate on a paperless software system and provide a secured cloud-based portal for all clients. The City will have a separate folder that can be customized to organize, and upload requested schedules, support documents, etc. After interim testing, we will hold an exit meeting to discuss potential weaknesses, if any, and provide feedback for improvements or valuable information gathered from any outside clientele that would benefit the City. Segment 2 – Financial Audit Testing Based on the information gathered thus far, we will utilize a customized audit program based on the risk assessment developed during our assessment of the City’s internal controls and Government Auditing Standards. The primary benefit of a tailored program is a focused set of procedures to address relevant areas. We believe that this approach is both effective and efficient and is critical to compliance with other material laws and regulations. We will annually compile another customized PBC list for the year-end testing provided at least one month prior or earlier if requested. We will request trial balances from the City for our analytical review to be provided one week before testing is scheduled to commence. Year-end testing will include testing of the balance sheet, revenue and expenditures accounts, confirmation of selected balances, analytical procedures, evaluation of the internal controls, and preparation of reports and letters. Page 135 of 1128 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 17 www.lslcpas.com | 17 Segment 3 – Conclusion Based on our year-end exit meeting we will discuss a plan to finalize the financial statements according to the timetable of the City. We will schedule dates for the initial and final drafts including time for LSL’s and the City’s review and approval of the financial statements. This period will also account for review by the engagement partner and quality assurance partner. After the review and receipt of the signed Representation Letter from the City, LSL will provide a final report around December 15th of each year. APPROACH TO SELECTING SAMPLE SIZES For tests of controls, we use audit sampling. Tests of controls are procedures directed towards determining the effectiveness of the design or operation of an internal structure policy or procedures. Audit sampling is typically used for tests of controls and compliance that involve the inspection of documents and reports indicating the performance of the applicable policy or procedures and compliance with the applicable laws and regulations. Sample sizes vary based on the population and risk-based calculations. TYPE AND EXTENT OF ANALYTICAL PROCEDURES For the audits of the financial statements, we will use analytical procedures as an overall review of the financial information in the preliminary and final stages of the audits. These procedures are designed to assist us in planning our audits and in assessing the propriety of the conclusions reached and evaluating the overall financial statement presentation. The procedures to be utilized consist of determining expectations for changes to significant revenue, expenditure, and balance sheet accounts, reading the financial statements and related notes, reviewing the budget and related material, and focusing on overall relationships within the financial statements. Once determined, these are reviewed to evaluate if the changes appear reasonable or require further analysis. For all significant differences, explanations are obtained as to why the situation occurred and additional substantive procedures may be applied, and related evidence is gathered to resolve concerns and questions. DRAWING AUDIT SAMPLES FOR COMPLIANCE The sampling procedures test the operating effectiveness of an internal control structure policy or procedure by determining how the policy or procedure was applied, the consistency with which it was applied during the audit period, and by whom it was applied. We will draw samples for disbursements, receipts, and payroll when applicable. Each document selected will be tested for various attributes that are designed to verify compliance with different aspects of internal controls and applicable laws and regulations. Additionally, each sample item will be tested for coding to the proper accounts and posting to the general ledger. Page 136 of 1128 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 18 www.lslcpas.com | 18 LSL’S APPROACH TO UNDERSTANDING THE CITY’S INTERNAL CONTROL STRUCTURE LSL will perform procedures as required by SAS 122-125 to obtain an understanding of the City and its environment along with assessing the risks of material misstatements in order to gain insight into the internal control structure over the financial statements. Our review will encompass various areas such as financial reporting, cash, revenues and receivables, utility billing, expenses, accounts payable, payroll, capital assets, long-term debt, and grant reporting. We will issue a management letter (SAS 115 Letter) that identifies any significant deficiencies and/or material weaknesses found as required by the Government Auditing Standards. Throughout the year, LSL will conduct interviews with the management of finance and responsible parties of each audit section to understand the processes and controls through observation and discussions. We will also perform sampling transactions as part of a “walk- through” process to verify that the system of control is functioning as per the policies and procedures. DETERMINING LAWS AND REGULATIONS SUBJECT TO AUDIT TEST WORK The Laws and Regulations that will be subject to audit test work are determined by the applicable laws, regulations, contracts, and grant agreements which we identify through the understanding we obtain of the City and our extensive experience with other governmental entities. WORKING PAPER RETENTION AND ACCESS All working papers and reports will be retained at LSL’s expense for a minimum of five (5) years unless otherwise notified in writing by the City of the need to extend that retention period. Upon written request, we will make working papers available to parties designated by the City. Furthermore, we will respond to the reasonable inquiries of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance. IRREGULARITIES AND ILLEGAL ACTS LSL acknowledges our responsibility to make an immediate, written report of all irregularities and illegal acts, or indications of illegal acts, of which we become aware to the City Council, City Manager, City Attorney, the Finance Committee, and the Director of Finance. Page 137 of 1128 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 19 www.lslcpas.com | 19 BENEFITS OF WORKING WITH LSL LSL is a multi-location firm with formidable resources that provides a personal feel and hands- on client experience. LSL is ranked #15 on the Orange County Business Journal’s CPA Firm Book of Lists, which highlights the top accounting firms in Orange County. OUR CORE VALUES As we continue to grow and evolve, we recognized our core values needed to grow and change with us. Our values weren’t decided on by management and handed down, every member of the LSL team worked together to share what values matter most to us. From there, we came up with the following five core values that embody how we approach each other, our work, and our clients. Page 138 of 1128 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 20 www.lslcpas.com | 20 BEST OF ACCOUNTING AWARD LSL CPAs delivers high-quality service and has consistently secured the ClearlyRated Best of Accounting award. This exclusive program awards accounting firms who demonstrate high-level service of excellence within the accounting industry and solely leverages statistically validated survey responses from our clients. ACCOUNTING TODAY REGIONAL LEADER LSL CPAs has been recognized as an Accounting Today Regional Leader in 2023. The list ranks the top CPA firms that have shown exceptional growth, embraced technology, and who ‘think outside the box’ when providing solutions. TRAINING & SEMINARS LSL regularly leads seminars and training courses on introductory governmental accounting, preliminary views on financial reporting, internal control risk assessments, and all GASB updates and best practices, which are made available to our clients for additional information and continued support. These will be opportunities made available through our firm to the City for training or continuing professional education credits on current issues or governmental auditing and accounting in general. Page 139 of 1128 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 21 www.lslcpas.com | 21 EXHIBIT A – CURRENT LIST OF MUNICIPAL CLIENTS Page 140 of 1128 olum Client Contact Person Services Years Phone Agoura Hills Ms. C. Pinuelas, Finance Manager F 8 818-597-7319 * Barstow Ms. H. Riley, Admin Services Manager F, S 3 760-255-5115 * Big Bear Lake Ms. K. Ent, Director of Government Services F, S 25 909-866-5831 Burbank Ms. C. L Giraldo, Financial Services Director I 12 818-238-5487 Canyon Lake Mr. C. Mann, City Manager F 28 909-244-2955 * Carlsbad Mr. Z. Korach, Finance Director F, S 2 442-339-2127 * Cathedral City Mr. K. Biersack, Fiscal Officer F, S 13 760-770-0378 * Chino Hills Ms. C. Buhagiar, Finance Director F, S 26 909-364-2600 * Chula Vista Ms. S. Schoen, Director of Finance F, S 9 619-409-3818 * Citrus Heights Mr. A. Preciado, Accounting Manager F, S 4 916-727-4705 * Citrus Heights Water District Ms. T. Nossardi, Finance Manager F, U 2 916-735-7703 * Cypress Ms. D. Mullally, Assistant Finance Director F, S 6 714-229-6700 * Diamond Bar Mr. R. Samario, Interim Finance Director F, S 13 909-839-7051 * Dixon Ms. K. Zawadzki, Finance Director F, S 9 707-678-7000 * Downey Mr. A. Gandhy, Finance Director F, S 8 562-904-7265 * East Bay Municipal Utility District Ms. A. Miller, Controller F, U 5 510-287-0230 * Eastern Municipal Water District Ms. W. Garriz, Controller F, S 2 951-928-3777 * Fullerton Ms. T. Smart, Fiscal Services Manager F, S 12 714-738-3139 * Galt Mr. M. Boring, Finance Director F, S 6 209-366-7140 Georgetown Divide Public Utility District Ms. J. Buckle, Accounting Manager F, S, C 6 530-333-4356 Grand Terrace Ms. C. Clayton, Senior Accountant F 9 909-824-6621 * Indio Mr. R. Rockwell, Assistant City Manager/Director of Finance F, S 7 760-391-4029 Inglewood Ms. L. Gomez, Accounting Manager F, S 8 310-412-5127 * Irwindale Ms. K. Borhani, Finance Director F 28 626-430-2268 Jurupa Community Services District Mr. S. Popelar, Director of Finance and Administration F 4 951-685-7434 * Lake Elsinore Ms. N. Lassey, Finance Manager F, S 6 951-674-3124 * Lathrop Mr. T. Hedegard, Deputy Finance Director F, S 3 209-941-7320 Livingston Ms. V. Portillo, City Manager F, S 2 209-394-5550 * Lodi Ms. M. Munoz, Accounting Manager F, S 1 209-333-6700 * Lompoc Ms. C. Donnelly, Acting Management Services Director F, S 2 805-875-8283 * Los Angeles County Development Authority Mr. M. Fortini, Finance Director F, S 6 626-586-1890 * Malibu Ms. R. Feldman, City Manager F 19 310-456-2489 * Manhattan Beach Mr. S. Charelian, Finance Director F 18 310-802-5553 * Menlo Park Mr. M. Davis, Finance & Budget Manager F 5 650-330-6632 * Monrovia Ms. B. Bullis, Director of Administrative Services F, S 22 626-932-5510 * Monterey One Water Mr. F. Marsh, Chief Financial Officer F, S, U 9 831-645-4623 Monterey Peninsula Airport District Mr. M. Wilson, Controller F, S 5 831-648-7000 x201 * Moorpark Mr. P. Gagajena, Finance Director F, S 5 805-517-6213 * Newark Ms. K. Lee, Finance Director F 5 510-578-4288 * Oceanside Ms. J. Moya, Accounting Manager F, S 14 760-435-3887 Ontario International Airport Ms. K. Snow, Finance Manager F, S 6 714-415-9636 * Orange Ms. K. Bandhauer, Assistant Finance Director F, S 2 714-744-5500 * Orange County Fire Authority Ms. G. Cheung, Accounting Manager F, S 4 714-573-6000 * Orange County Water District Mr. R. Fick, CFO/Treasurer F, S 2 714-378-3200 Orchard Dale Water District Mr. R. Richard, Finance Manager F, U 4 562-941-0114 * Palm Desert Mr. V. Chavez, Finance Director F 6 760-346-0611 * Pleasanton Ms. D. Punzo, Financial Services Manager F, S 3 925-931-5402 * Rainbow Municipal Water District Ms. T. Largent, Finance Manager F, S 3 760-728-1178 * Rancho Cucamonga Ms. N. Daniels, Finance Director F, S, U 45 909-989-1851 Current List of Municipal Clients Page 141 of 1128 olum Client Contact Person Services Years Phone * Redondo Beach Ms. W. Collazo, Chief Deputy City Treasurer F, S 6 310-372-1171 x2428 * Rialto Ms. K. Stevens, Deputy Director of Finance F, S 2 909-421-7242 * Riverside Ms. N. Garcia, Controller F, S, U 4 951-826-5466 Rolling Hills Mr. R. Samario, Interim Finance Director F 14 310-377-1521 * Rosemead Ms. G. Molleda, City Manager F, S 5 626-569-2146 * Roseville Mr. D. Kaufman, Assistant City Manager/CFO F, S 2 916-774-5314 * San Bernardino Municipal Water Dept. Ms. C. Mouser, Director of Finance F 4 909-453-6010 * San Clemente Mr. J. Rahn, Finance Director F 5 949-361-8360 * San Joaquin Council of Governments Ms. G. Orosco, Manager of Finance F, S 4 209-235-0454 * San Juan Capistrano Mr. K. Al-Imam, Chief Financial Officer F, S 2 949-443-6301 San Marino Mr. M. Siegfried, Controller F 29 626-300-0700 * Santa Clarita Valley Water Agency Ms. A. Aguer, Controller F, U 4 661-513-1237 * Santa Monica Ms. G. Decavalles-Hughes, Finance Director F, S 7 310-458-8281 Shafter Mr. R. Sanchez, Administrative Services Director F, S 2 661-746-5043 Six Basins Watermaster Mr. L. Stahlhoefer, Controller F 14 949-420-3030 Sonoma County Fair & Exposition, Inc. Mr. M. Margetts, Fair Financial Officer F 5 707-573-9342 Sutter County Mr. N. Black, Auditor-Controller F, S 4 530-822-7439 * Three Valleys Water District Mr. J. Linthicum, Chief Financial Officer F, U 15 909-621-5568 * Union Sanitary District Mr. M. Carlson, CFO/Business Services Manager F, U 6 510-477-7647 * Vacaville Ms. C. Reams, Accounting Manager F, S 3 707-449-5688 * Vallejo Ms. F. Cruz, Assistant Director, Finance F, S 4 707-648-5542 * Yolo County Mr. T. Haynes, Interim Chief Financial Officer F, S 4 530-666-8050 * Yorba Linda Water District Ms. D. Lugo, Finance Manager F 2 714-701-3040 S - Single Audit I - Internal Audit C - Consulting U - Utility Agency * Participated in the GFOA Award Programs and has received or anticipates receiving outstanding awards Service Codes: F - Financial Audit Page 142 of 1128 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 24 www.lslcpas.com | 24 EXHIBIT B – ENGAGEMENT TEAM RESUMES Page 143 of 1128 Ryan Domino, CPA ENGAGEMENT PARTNER ACHIEVEMENTS Ryan currently serves as a technical reviewer for the Government Finance Officers Association (GFOA) and has been a presenter at CSMFO’s chapter meetings. He has been involved with teaching current audit and accounting-related material at LSL’s in-house training seminars, and annual GASB Update. CONTINUING EDUCATION 231 total hours over the last three years, 204 of which were in governmental accounting and auditing subjects. Ryan meets the requirements of governmental CPE Government Auditing Standards. EXPERIENCE Ryan has over 11 years of experience in governmental auditing including financial statement audits, preparation of Annual Comprehensive Financial Reports, Housing Successor compliance audits, TDA compliance audits, Single Audits, Federal Student Financial Aid audits, and various consulting and agreed-upon procedures projects. Ryan is one of the firm’s leaders in ensuring audit quality control and Government Practice training for staff. He is a regular presenter at the firm’s annual GASB Update where he has presented training to our clients on the latest GASB pronouncements and has been a presenter for CSMFO’s chapter meetings. Some of his presentations have covered: General auditing in accordance with GAGAS Accounting for capital assets GASB Statement Nos. 89, 90, 91, and 94 MEMBERSHIPS AICPA, CalCPA, CSMFO, GFOA EDUCATION Bachelor of Arts Degree in Business Administration with an emphasis in Accounting – California State University, Fullerton LICENSES & CERTIFICATIONS Certified Public Accountant: California Texas AICPA Advanced Single Audit Certification AUDIT ENGAGEMENTS City of Agoura Hills, CA City of Carlsbad, CA City of Cathedral City, CA City of Chula Vista, CA City of Fullerton, CA City of Indio, CA City of Lompoc, CA City of Moorpark, CA City of Orange, CA City of Pleasanton, CA City of Rialto, CA City of Riverside, CA City of San Clemente, CA City of San Juan Capistrano, CA City of Santa Monica, CA Eastern Municipal Water District Jurupa Community Services District Orange County Fire Authority Orange County Water District Orchard Dale Water District Rainbow Municipal Water District San Bernardino Muni. Water Dept. Three Valleys Muni. Water Dist. United Water Conservation Dist. Yorba Linda Water Dist. OTHER ENGAGEMENTS California Dept. of Healthcare Svcs. City of American Canyon, CA City of Marfa, TX Page 144 of 1128 Brandon Young, CPA QUALITY ASSURANCE PARTNER ACHIEVEMENTS Brandon is an expert in Governmental Accounting and Auditing, with over 12 years of experience serving a wide range of clients. He recently was appointed to serve on the prestigious AICPA State and Local Government Expert Panel, with the term beginning in May of 2023, and also has served on the CalCPA Governmental Accounting and Auditing Committee since 2018. CONTINUING EDUCATION 125 total hours over the last three years, 74 of which were in governmental accounting and auditing subjects. Brandon meets the requirements of governmental CPE Government Auditing Standards. EXPERIENCE Brandon has performed all phases of governmental audits with numerous presentations to City Councils, Board of Supervisors, Board of Directors, and Audit Committees over the past twelve years. He routinely presents at CSMFO, local chapter meetings and CalSACA on current accounting and auditing material. He also regularly teaches current audit and accounting-related material at LSL training seminars, webinars, and client education workshops and training events. His work has entailed: The preparation of the ACFR for entities involved in CSMFO and GFOA in the U.S. Audit review and technical assistance throughout the year to deliver the most up-to-date information with current GASB pronouncements Presentation of audit results to Audit Committees or others charged with governance Risk assessment and evaluation of internal controls with COSO and Federal Green Book Single Audits in accordance with new Uniform Guidance MEMBERSHIPS AICPA, AICPA SLG Expert Panel CalCPA, CalCPA State GAA, CSMFO, GFOA EDUCATION Bachelor of Arts Degree in Accounting, Magna Cum Laude – Vanguard University LICENSE Certified Public Accountant: California ENGAGEMENTS City of Chula Vista City of Citrus Heights City of Coronado City of Dinuba City of Dixon City of Emeryville City of Galt City of Lathrop City of Live Oak City of Livingston City of Menlo Park City of Newark City of Pasadena City of Pleasanton City of Riverside City of Roseville City of Santa Monica City of Shafter Coachella Valley Water District County of Sutter County of Yolo Covered California East Bay Municipal Utility District GDPUD Inland Empire Utilities Agency Monterey Peninsula Airport District Orange County Water District San Joaquin Council of Gov. Santa Clarita Valley Water Agency Three Valleys Municipal Water Dist. Union Sanitary District Page 145 of 1128 Frank North, CPA SENIOR MANAGER ACHIEVEMENTS Frank currently serves as a technical reviewer for the Government Finance Officers Association (GFOA). He has earned the Advanced Single Audit Certification issued by the AICPA for planning, performing, and evaluating Single Audits in compliance with the Uniform Guidance. CONTINUING EDUCATION 142 total hours over the last three years, 86 of which were in governmental accounting and auditing subjects. Frank meets the requirements of governmental CPE Government Auditing Standards. EXPERIENCE With 30 years of experience in governmental audits, Frank has established himself as an outstanding asset and resource at LSL. He has demonstrated his talents in the areas of municipal accounting and auditing. During his time with the firm, Frank has performed all phases of our municipal audits, including ACFR audits, successor agency audits, component units, municipal utilities, and single audits. He has been involved in the following municipal engagements. His work entailed the preparation of the Comprehensive Annual Financial Report for those entities involved in the award programs of the California Society of Municipal Finance Officers and the Government Finance Officers Association of the United States and Canada. MEMBERSHIPS AICPA, CalCPA, GFOA EDUCATION Bachelor of Arts Degree in Business Administration, emphasis in Accounting – California State University, Fullerton LICENSE Certified Public Accountant: California ENGAGEMENTS City of Barstow City of Big Bear Lake City of Canyon Lake City of Chino Hills City of Downey City of Grand Terrace City of Inglewood City of Irwindale City of Malibu City of Manhattan Beach City of Rancho Cucamonga City of Redondo Beach City of Riverside City of Rialto City of San Marino Eastern Municipal Water District Page 146 of 1128 Calvin Kunkel, CPA AUDIT MANAGER ACHIEVEMENTS Calvin helps our clients prepare and implement their Annual Comprehensive Financial Report (ACFR) for the Government Finance Officers Association (GFOA) award. He brings insightful perspectives to tackling our client’s toughest obstacles. He loves helping clients recognize patterns and effectively apply analytic procedures to resolve their unique and complex challenges. CONTINUING EDUCATION 230 total hours over the last three years, 75 of which were in governmental accounting and auditing subjects. Calvin meets the requirements of governmental CPE Government Auditing Standards. EXPERIENCE Calvin has performed all phases of our government audits, including ACFR audits, Single Audits, and special districts. His work has entailed: Assisting in the preparation of the Annual Comprehensive Financial Report Performing analytical and substantive audit procedures on account balances Planning the nature, timing, and extent of procedures involved in the audit process audits in accordance with the provisions of Government Auditing Standards and the provisions of the Single Audit Act and the Uniform Guidance Assisting clients with the preparation and review of GASB 68, 75, and 84 journal entries Review of capital assets, debt service, and federal and state award schedules MEMBERSHIPS Firm Member, PrimeGlobal EDUCATION B.A. degree in English – Illinois State University Master of Accountancy – Northern Illinois University LICENSE Certified Public Accountant Illinois ENGAGEMENTS City of Burbank City of Cathedral City City of Diamond Bar City of Inglewood City of Palm Desert City of Redondo Beach City of Rialto City of Vacaville Ontario Intl Airport Authority San Bernadino MWD SCAQMD Page 147 of 1128 Page 148 of 1128 PREPARED BY Lance, Soll & Lunghard, LLP Certified Public Accountants License Number 2584 COST PROPOSAL City of Palm Desert Professional Auditing Services RFP No. 2023-RFP-213 Date of Submission: November 9, 2023 Valid for 90 Days Authorized by Ryan Domino, CPA, Partner Ryan.Domino@lslcpas.com 203 N. Brea Blvd., Suite 203 Brea, CA 92821 Attachment 2 Page 149 of 1128 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 1 www.lslcpas.com | 1 COST PROPOSAL ALL-INCLUSIVE MAXIMUM PRICE *Price includes one (1) major program. Each additional program is $3,500. LSL’S STANDARD HOURLY BILLING RATES *The quoted fees above include a standard 3% increase year-over-year. However, this percentage increase will be compared to the CPI indicator each year and will be adjusted if that amount exceeds 3%. The higher of the 3% or CPI indicator will be used each year. Report 2023/24 2024/25 2025/26 2026/27 2027/28 Optional 2028/29* Optional 2029/30* Optional 2030/31* $78,450 $80,804 $83,228 $85,725 $88,297 $90,946 $93,674 $96,484 $7,370 $7,591 $7,819 $8,054 $8,296 $8,545 $8,801 $9,065 $12,570 $12,947 $13,335 $13,735 $14,147 $14,571 $15,008 $15,458 $590 $608 $626 $645 $664 $684 $705 $726 Included Included Included Included Included Included Included Included $98,980 $101,950 $105,008 $108,159 $111,404 $114,746 $118,188 $121,733 ($9,898) ($10,195) ($10,501) ($10,816) ($11,140) ($11,475) ($11,819) ($12,173) $89,082 $91,755 $94,507 $97,343 $100,264 $103,271 $106,369 $109,560 OptionalAll-Inclusive Maximum Price by Report Palm Desert Recreational Facilities Corporation Audit Financial Statements Single Audit* Total for Fiscal Year (Not-to-Exceed) Out-of-Pocket Expenses SUBTOTAL FOR FISCAL YEAR Gann Limit Verifications Current Client Discount (10%) Page 150 of 1128 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 2 www.lslcpas.com | 2 LEVEL OF STAFF ASSIGNED AND NUMBER OF HOURS TO BE ASSIGNED *Hours proposed are for one (1) major program. MANNER OF PAYMENT Progress payments will be made on the basis of hours of work completed during the course of the engagement and out-of-pocket expenses incurred in accordance with the firm's proposal. Interim billings shall cover a period of not less than a calendar month. The final ten percent (10%) of the total all-inclusive maximum price will be paid upon delivery of the firm's final reports. Segment/Task Partners Manager Senior Experienced Staff Staff Clerical Total Financial Statements Interim Testwork 4 4 40 - 80 - 128 Year-End Testwork - - 120 50 100 - 270 Report/Review/Supervision 16 40 - - - 13 69 Subtotal 20 44 160 50 180 13 467 Single Audit* Testwork - - 10 24 - - 34 Report/Review/Supervision 2 4 - - - 3 9 Subtotal 2 4 10 24 - 3 43 Testwork 2 3 62 - - - 67 Report/Review/Supervision - - - - - - - Subtotal 2 3 62 - - - 67 Gann Limit Verifications Testwork - 1 2 - - - 3 Report/Review/Supervision - - - - - - - Subtotal - 1 2 - - - 3 TOTAL PROPOSED HOURS: 24 52 234 74 180 16 580 TOTAL PROPOSED HOURS Palm Desert Recreational Facilities Corporation Audit Page 151 of 1128 Page 152 of 1128 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 15, 2024 PREPARED BY: Daniel Hurtado, Public Safety Analyst REQUEST: APPROVE A THREE-YEAR LEASE AGREEMENT WITH TWO, ONE- YEAR EXTENSIONS BETWEEN THE CITY OF INDIAN WELLS AND CITY OF PALM DESERT FOR THE USE OF INDIAN WELLS FIRE STATION NO. 55 RECOMMENDATION: 1. Approve a three-year lease agreement with two, one-year extensions between the City of Indian Wells and the City of Palm Desert for the Use of Indian Wells Fire Station No. 55. 2. Authorize the City Attorney to make any necessary, nonmonetary changes to the agreement. 3. Authorize the City Manager or designee to execute the lease agreement between the City of Indian Wells and the City of Palm Desert. BACKGROUND/ANALYSIS: The ambulance medic unit at Indian Wells Fire Station No. 55, located at 44 -900 El Dorado Drive, responded to medic transport calls (approximately 70%-80%) within the City of Palm Desert. To alleviate this condition and as part of the Fiscal Year 2009/10 budget process, the City Council approved the inclusion of an additional medic unit at Indian Wells Fire Station No.55, to respond to increased medical-related calls for service from the City's eastern boundaries. The City entered into a lease agreement with Indian Wells effective July 1, 2009, to operate the medic unit at Indian Wells Fire Station No. 55. The premises are leased to Palm Desert for the operation and staffing of a two-person paramedic unit. The lease agreement permits the City’s use of one paramedic bay and sharing the building facilities on a non-exclusive basis. The City of Palm Desert had initially paid for the exhaust drop - down unit that directs the vehicle's exhaust away from the apparatus bay during start-up, which is the City's responsibility to maintain. The City of Indian Wells will continue to be responsible for all utility costs and insuring of the building. The current lease agreement has a two-year term expiring on June 30, 2024. The term of this new lease shall be for a period of three-years commencing on July 1, 2024, and extending through June 30, 2027, with no more than two extensions that may occur under this lease (for a total of five years). This agreement can be terminated by either party at any time providing 60 days written notice. Legal Review: This report has been reviewed by the City Attorney’s office. Page 153 of 1128 City of Palm Desert (Fire Station 55 Lease Agreement) Page 2 of 2 FINANCIAL IMPACT: There will be no annual rental fee charged to the City of Palm Desert associated with this lease. Palm Desert will be responsible for the maintenance and repair of the drop -down exhaust removal Plymovent system utilized by Palm Desert’s Medic Unit for ventilation. The City of Indian Wells will continue to be responsible for all utility costs and insuring the building. There will be cost-shared by Indian Wells for purchases or expenditures from which Palm Desert will benefit by reimbursing Indian Wells 30 percent of the total of any such costs. This project is paid for from the Fire Services / Repair & Maintenance Buildings account number 2304220-4331000. Year Reimbursement Cost 2021 $2,051.52 2022 $3,102.29 2023 $5,286.42 ATTACHMENT: Lease Agreement Page 154 of 1128 Page 155 of 1128 Page 156 of 1128 Page 157 of 1128 Page 158 of 1128 CALIFORNIA IN WITNESS THEREOF, THE PARTIES HAVE EXECUTED THIS LEASE OF THE LAST DATE SET FORTH BELOW. CITY OF PALM DESERT: By: L. Todd Hileman, City Manager Dated: ATTEST: By: Anthony J. Mejia, City Clerk APPROVED AS TO FORM: Isra Shah, City Attorney Best, Best & Krieger LLP CITY OF INDIAN WELLS: By: GREG SANDERS, MAYOR Dated: ATTEST: By: Angelica Avila, City Clerk APPROVED AS TO FORM: Todd Leishman, for Best, Best & Krieger LLP City Attorney 44-950 Eldorado Drive ~ Indian Wells, California 92210-7497 ~ V (760) 346-2489 F (760) 346-0407 www.lndianWells.com 26529.00000\41947575.2 Page 159 of 1128 Page 160 of 1128 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 15, 2024 PREPARED BY: Daniel Hurtado, Public Safety Analyst REQUEST: APPROVE AGREEMENT WITH FLOCK SAFETY FOR AUTOMATED LICENSE PLATE RECOGNITION SOFTWARE SUBSCRIPTION FOR A TERM OF FIVE YEARS RECOMMENDATION: 1. Approve an agreement with Flock Group, Inc., dba Flock Safety, for Automated License Plate Recognition (ALPR) software subscription for a term of five (5) years. 2. Authorize the City Attorney to make necessary, non -monetary changes to the Agreement. 3. Authorize the City Manager to execute the Agreement and any documents necessary to effectuate the actions taken herewith. BACKGROUND/ANALYSIS: On June 9, 2022, the City Council awarded a contract to Flock Safety for the deployment of 49 Automated License Plate Recognition (ALPR) cameras. This award included Flock Safety participating in a Request for Proposal (RFP) process and being reviewed and recommen ded by a committee comprised of the City Council, Public Safety Commissioners, Riverside County Sheriff’s Department, and City staff. On March 23, 2023, the City Council approved Phase 2 of a fixed location for the addition of 53 ALPR cameras. On December 14, 2023, the City Council approved Phase 3 of a fixed location for the ALPR system adding an additional 11 new cameras to the City. All three Phases of Contract No. C43220 with Flock Safety were complete, totaling 113 cameras within the City of Palm Desert. The system became operational in October 2022. Since that time, it has proven to be an effective force multiplier for the Riverside County Sheriff’s Department (RCSD) leading to the apprehension of criminals faster, quicker closure of cases, and bein g able to help RCSD solve cases that they could not without this technology. At the same time, the City reports out on a monthly basis the listing of all policing agencies who have requested access to Palm Desert data. Staff reviews this list in order verify compliance with state law requirements. In order to more efficiently administer services with Flock Safety, staff is requesting approval of this one agreement instead of having three previously approved ones in place. This will align the expenditures in the same fiscal year and allow for efficient tracking of the ALPR program. Additionally, this locks in the $2,500 price per camera for the next five years instead of the current day pricing of $3,000, which saves $56,500 for the five year term of this agreement. Staff will continue to develop metrics and reports on the success of the system. Legal Review: This report has been reviewed by the City Attorney’s office. Page 161 of 1128 City of Palm Desert Flock ALPR Software 5-Year Subscription Page 2 of 2 Strategic Plan: Public Safety and Emergency Services section of the Palm Desert Strategic Plan, specifically under Priority 1: Enhance the delivery of public safety services. The priority strategy is to expand the existing superlative services provided by the fire and pol ice departments to address future growth and safety concerns. One of the action steps is to identify public safety needs including new equipment. FINANCIAL IMPACT: This cost for the subscription will be paid from the anticipated cost savings related to the police service contract and included in the 2024/25 Operating Budget request in account number 1104210-4304000. All future years will be included as part of future operating budget requests and subject to appropriation. Flock Safety Platform Flock OS and Flock Safety Falcon Included Year 1 07/01/24 – 06/30/25 $ 282,500 Year 2 07/01/25 – 06/30/26 $ 282,500 Year 3 07/01/26 – 06/30/27 $ 282,500 Year 4 07/01/27 – 06/30/28 $ 282,500 Year 5 07/01/28 – 06/30/29 $ 282,500 Contract Total $1,412,500 ATTACHMENT: Professional Service Agreement with Flock Safety Page 162 of 1128 Contract No. ___________ 1 Revised 07-2023 BBK 72500.00001\32374915.1 CITY OF PALM DESERT PROFESSIONAL SERVICES AGREEMENT 1.Parties and Date. This Agreement is made and entered into this 17th day of January, 2024, by and between the City of Palm Desert, a municipal corporation organized under the laws of the State of California with its principal place of business at 73-510 Fred Waring Drive, Palm Desert, California 92260-2578 (“City”) and FLOCK GROUP INC DBA FLOCK SAFETY, a Corporation, with its principal place of business at 1170 Howell Mill Road, NW Suite 210, Atlanta Georgia 30318 ("Vendor"). The City and Vendor are sometimes individually referred to herein as "Party" and collectively as "Parties." 2. Recitals. 2.1 Project. The City is a public agency of the State of California and is in need of professional services for the following project: Automated License Plate Recognition Software Subscription (hereinafter referred to as “the Project”). 2.2 Consultant. Consultant desires to perform and assume responsibility for the provision of certain professional services required by the City on the terms and conditions set forth in this Agreement. Consultant is duly licensed and has the necessary qualifications to provide such services. 3.Terms. 3.1 Scope of Services and Term. 3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations. 3.1.2 Term. The term of this Agreement shall be from July 1, 2024, to June 30, 2029, unless earlier terminated as provided herein. Contractor shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines. 3.2 Responsibilities of Consultant. 3.2.1 Independent Contractor; Control and Payment of Subordinates. The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods, and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee. Any personnel performing the Services shall not be employees of City and shall at all times be under Consultant's exclusive direction and control. Neither City, or any of its officials, officers, Page 163 of 1128 Contract No. ___________ 2 Revised 07-2023 BBK 72500.00001\32374915.1 directors, employees, or agents shall have control over the conduct of Consultant or any of Consultants officers, employees or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. 3.2.2 Schedule of Services. Consultant shall perform the Services in a prompt and timely manner in accordance with the Schedule of Services set forth in Exhibit "A" attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services expeditiously. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services. 3.2.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City. 3.2.4 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. The key personnel for performance of this Agreement are as follows: Tonia Crump, Customer Success Manager, Major Accounts.. 3.2.5 City's Representative. The City hereby designates L. Todd Hileman, City Manager, or his/her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement ("City's Representative"). City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant but not the authority to enlarge the scope of Services or change the total compensation due to Consultant under this Agreement. The City Manager shall be authorized to act on City's behalf and to execute all necessary documents which enlarge the scope of services or change the Consultant's total compensation subject to the provisions contained in Section 3.3 of this Agreement. Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee. 3.2.6 Consultant's Representative. Consultant hereby designates Tonia Crump, Customer Success Manager, Major Accounts, or his/her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement. 3.2.7 Coordination of Services. Consultant agrees to work closely with City staff in the performance of Services and shall be available to City's staff, consultants, and other staff at all reasonable times. 3.2.8 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the Page 164 of 1128 Contract No. ___________ 3 Revised 07-2023 BBK 72500.00001\32374915.1 standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement. Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant's failure to comply with the standard of care provided herein. Any employee of the Consultant or its sub-consultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project. 3.2.9 Period of Performance. Consultant shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above (“Performance Time”). Consultant shall also perform the Services in strict accordance with any completion schedule or Project milestones described in Exhibits “A” or “B” attached hereto, or which may be separately agreed upon in writing by the City and Consultant (“Performance Milestones”). Consultant agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such Performance Milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage. Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non-performing Party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that materially affects a Party’s performance and is one or more of the following: (1) Acts of God or other natural disasters; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the services); (4) strikes and other organized labor action occurring at the site and the effects thereof on the services, only to the extent such strikes and other organized labor action are beyond the control of Consultant and its subcontractors, and to the extent the effects thereof cannot be avoided by use of replacement workers; and (5) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of a public agency applicable to the services and Agreement. Should a Force Majeure Event occur, the non-performing Party shall, within a reasonable time of being prevented from performing, give written notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. Force Majeure Events and/or delays, regardless of the Party responsible for the delay, shall not entitle Consultant to any additional compensation. Notwithstanding the foregoing in this section, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement. 3.2.10 Laws and Regulations; Employee/Labor Certification. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations Page 165 of 1128 Contract No. ___________ in connection with the Services and this Agreement. All violations of such laws and regulations shall be grounds for the City to terminate the Agreement for cause. 3.2.10.1 Employment Eligibility; Consultant. Consultant certifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time and shall require all subconsultants and sub-subconsultants to comply with the same. Consultant certifies that it has not committed a violation of any such law within the five (5) years immediately preceding the date of execution of this Agreement and shall not violate any such law at any time during the term of the Agreement. 3.2.10.2 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer, and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, physical disability, ancestry, sex, age, marital status, gender, gender identity, gender expression, sexual orientation, reproductive health decision making, veteran or military status, or any other consideration made unlawful by federal, state, or local laws. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted. 3.2.10.3 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. 3.2.11 Insurance. 3.2.11.1 Minimum Requirements. Without limiting Consultant’s indemnification of City, and prior to commencement of the Services, Consultant shall obtain, provide, and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form that is satisfactory to City. (A) General Liability Insurance. Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. (B) Automobile Liability Insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non- owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. The City’s Risk Manger may modify this requirement if it is determined that Consultant will not be utilizing a vehicle in the performance of his/her duties under this Agreement. 4 Revised 07-2023 BBK 72500.00001\32374915.1 Page 166 of 1128 Contract No. ___________ 5 Revised 07-2023 BBK 72500.00001\32374915.1 (C)Professional Liability (Errors & Omissions) Insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three years after completion of the Services required by this Agreement. (D)Workers’ Compensation Insurance. Consultant shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). Consultant shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its officers, agents, employees, volunteers, and representatives. (E)Umbrella or Excess Liability Insurance. Consultant may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Consultant shall obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer’s liability. Such policy or policies shall include the following terms and conditions: (1)A drop-down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; (2)Pay on behalf of wording as opposed to reimbursement; (3)Concurrency of effective dates with primary policies; and (4)Policies shall “follow form” to the underlying primary policies. (5)Insureds under primary policies shall also be insureds under the umbrella or excess policies. (F)Fidelity Coverage. RESERVED (G)Cyber Liability Insurance. Consultant shall procure and maintain Cyber Liability insurance with limits of $1,000,000 per occurrence/loss, which shall include the following coverage: (1)Liability arising from the theft, dissemination and/or use of confidential or personally identifiable information; including credit monitoring and regulatory fines arising from such theft, dissemination, or use of the confidential information. (2)Network security liability arising from the unauthorized use of, access to, or tampering with computer systems. Page 167 of 1128 Contract No. ___________ 6 Revised 07-2023 BBK 72500.00001\32374915.1 (3)Liability arising from the failure of technology products (software) required under the contract for Consultant to properly perform the services intended. (4)Electronic Media Liability arising from personal injury, plagiarism or misappropriation of ideas, domain name infringement or improper deep-linking or framing, and infringement or violation of intellectual property rights. (5)Liability arising from the failure to render professional services If coverage is maintained on a claims-made basis, Consultant shall maintain such coverage for an additional period of three (3) years following termination of the Agreement. 3.2.11.2 Other Provisions or Requirements. (A)Proof of Insurance. Consultant shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time. (B)Duration of Coverage. Consultant shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Services hereunder by Consultant, his/her agents, representatives, employees or subconsultants. (C)Primary/Non-Contributing. Coverage provided by Consultant shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City’s own insurance or self- insurance shall be called upon to protect it as a named insured. (D)City’s Rights of Enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications, or is canceled and not replaced, City has the right, but not the duty, to obtain the insurance it deems necessary, and any premium paid by City will be promptly reimbursed by Consultant, or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may terminate this Agreement. (E)Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager. Page 168 of 1128 Contract No. ___________ 7 Revised 07-2023 BBK 72500.00001\32374915.1 (F)Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City, its elected or appointed officers, agents, officials, employees, volunteers, and representatives or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against the City, its elected or appointed officers, agents, officials, employees, volunteers and representatives and shall require similar written express waivers and insurance clauses from each of its subconsultants. (G)Enforcement of Contract Provisions (non estoppel). Consultant acknowledges and agrees that any actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. (H)Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. (I)Notice of Cancellation. Consultant agrees to oblige its insurance agent or broker and insurers to provide City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. (J)Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability and cyber liability, policies shall provide or be endorsed to provide that the City and its officers, officials, employees, agents, volunteers and representatives shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement, under such policies. This provision shall also apply to any excess/umbrella liability policies. (K)Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. (L)Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. (M)Pass Through Clause. Consultant agrees to ensure that its subconsultants, subcontractors, and any other party involved with the Project who is brought onto or involved in the Project by Consultant, provide the same minimum insurance coverage and endorsements required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with Page 169 of 1128 Contract No. ___________ subconsultants, subcontractors, and others engaged in the Project will be submitted to City for review. (N)City’s Right to Revise Specifications. The City and the City’s Risk Manager reserve the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in additional cost to the Consultant, the City and Consultant may renegotiate Consultant’s compensation. If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice. (O)Self-Insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City. (P)Timely Notice of Claims. Consultant shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. (Q)Additional Insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Services. 3.2.12 Water Quality Management and Compliance. Consultant shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Services including, without limitation, all applicable provisions of the City’s ordinances regulating water quality and storm water; the Federal Water Pollution Control Act (33 U.S.C. §1251, et seq.); the California Porter-Cologne Water Quality Control Act (Water Code § 13000 et seq.); and any and all regulations, policies, or permits issued pursuant to any such authority. Consultant must comply with the lawful requirements of the City, and any other municipality, drainage district, or other local agency with jurisdiction over the location where the Services are to be conducted, regulating water quality and storm water discharges. Failure to comply with laws, regulations, and ordinances listed in this Section is a violation of federal and state law. Consultant warrants that all employees and subcontractors shall have sufficient skill and experience to perform the work assigned to them without impacting water quality in violation of the laws, regulations, and policies of this Section. 3.3 Fees and Payments. 3.3.1 Compensation. Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “A” attached hereto and incorporated herein by reference. The compensation shall not exceed TWO HUNDRED EIGHTY TWO THOUSAND, FIVE HUNDRED DOLLARS ($282,500.00) per Fiscal Year and ONE MILLION, FOUR HUNDRED TWELVE THOUSAND, FIVE HUNDRED DOLLARS ($1,412,500.00) aggregate total cost without written approval of the City Council or City Manager, as applicable. 3.3.2 Payment of Compensation. Consultant shall submit to City monthly invoices which provide a detailed description of the Services and hours rendered by Consultant. City shall, within 30 days of receiving such invoice, review the invoice and pay all non-disputed and approved charges. If the City disputes any of Consultant's fees, the City shall give written 8 Revised 07-2023 BBK 72500.00001\32374915.1 Page 170 of 1128 9 Revised 07-2023 BBK 72500.00001\32374915.1 Contract No. ___________ notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth therein. Consultant shall submit its final invoice to City within thirty (30) days from the last date of provided Services or termination of this Agreement and failure by the Consultant to submit a timely invoice may constitute a waiver of its right to final payment. Payment shall not constitute acceptance of any Services completed by Consultant. The making of final payment shall not constitute a waiver of any claims by the City for any reason whatsoever. 3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City or included in Exhibit "A" of this Agreement. 3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City. 3.4 Labor Code Requirements. 3.4.1 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. If the Services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, Consultant agrees to fully comply with such Prevailing Wage Laws. City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request and shall post copies at the Consultant's principal place of business and at the project site. It is the intent of the parties to effectuate the requirements of sections 1771, 1774, 1775, 1776, 1777.5, 1813, and 1815 of the Labor Code within this Agreement, and Consultant shall therefore comply with such Labor Code sections to the fullest extent required by law. Consultant shall defend, indemnify, and hold the City, its officials, officers, employees, agents, volunteers and representatives, free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. 3.4.2 Registration/DIR Compliance. If the Services are being performed on a public works project of over $25,000 when the project is for construction, alteration, demolition, installation, or repair work, or a public works project of over $15,000 when the project is for maintenance work, in addition to the foregoing, then pursuant to Labor Code sections 1725.5 and 1771.1, the Consultant and all subconsultants must be registered with the Department of Industrial Relations (“DIR”). Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants. This Project may also be subject to compliance monitoring and enforcement by the DIR. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements, including the submission of payroll records directly to the DIR. Any stop orders issued by the DIR against Consultant or any subconsultant that affect Consultant’s performance of Services, including any delay, shall be Consultant’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the City. Consultant shall defend, indemnify, and hold the City, its officials, officers, employees, agents, volunteers and representatives free and harmless from any claim or liability arising out of stop orders issued Page 171 of 1128 Contract No. ___________ 10 Revised 07-2023 BBK 72500.00001\32374915.1 by the DIR against Consultant or any subconsultant. 3.4.3 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code and agrees to comply with such provisions before commencing the performance of the Services. 3.5 Accounting Records. 3.5.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 3.6 General Provisions. 3.6.1 Termination of Agreement. 3.6.1.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those Services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause. The rights and remedies of the City provided in this section shall not be exclusive and are in addition to any other rights and remedies provided by law, equity or under this Agreement. 3.6.1.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request. 3.6.1.3 Early Termination. Notwithstanding any provision herein to the contrary, if for any fiscal year of this Agreement the City Council fails to appropriate or allocate funds for future payment under the Agreement after exercising reasonable efforts to do so, the City may upon seven (7) days’ written notice, order work on the Project to cease. Upon termination, Consultant shall be compensated only for those Services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. 3.6.1.4 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. 3.6.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose: Page 172 of 1128 Contract No. ___________ 11 Revised 07-2023 BBK 72500.00001\32374915.1 Consultant: FLOCK GROUP INC dba FLOCK SAFETY 1170 HOWELL MILL ROAD, NW SUITE 210 ATLANTA, GA, 30318 ATTN: TONIA CRUMP, CUSTOMER SUCCESS MANAGER, MAJOR ACCOUNTS City: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 ATTN: L. TODD HILEMAN, CITY MANAGER Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 3.6.3 Ownership of Materials and Confidentiality. 3.6.3.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). All Documents & Data shall be and remain the property of City and shall not be used in whole or in substantial part by Consultant on other projects without the City’s express written permission. Within thirty (30) days following the completion, suspension, abandonment or termination of this Agreement, Consultant shall provide to City reproducible copies of all Documents & Data, in a form and amount required by City. City reserves the right to select the method of document reproduction and to establish where the reproduction will be accomplished. The reproduction expense shall be borne by City at the actual cost of duplication. In the event of a dispute regarding the amount of compensation to which the Consultant is entitled under the termination provisions of this Agreement, Consultant shall provide all Documents & Data to City upon payment of the undisputed amount. Consultant shall have no right to retain or fail to provide to City any such documents pending resolution of the dispute. In addition, Consultant shall retain copies of all Documents & Data on file for a minimum of fifteen (15) years following completion of the Project and shall make copies available to City upon the payment of actual reasonable duplication costs. Before destroying the Documents & Data following this retention period, Consultant shall make a reasonable effort to notify City and provide City with the opportunity to obtain the documents. 3.6.3.2 Subconsultants. Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by professionals other than Consultant or its subconsultants, or those provided to Consultant by the City. 3.6.3.3 Right to Use. City shall not be limited in any way in its use or reuse of the Documents and Data or any part of them at any time for purposes of this Project Page 173 of 1128 Contract No. ___________ 12 Revised 07-2023 BBK 72500.00001\32374915.1 or another project, provided that any such use not within the purposes intended by this Agreement or on a project other than this Project without employing the services of Consultant shall be at City’s sole risk. If City uses or reuses the Documents & Data on any project other than this Project, it shall remove the Consultant’s seal from the Documents & Data and indemnify and hold harmless Consultant and its officers, directors, agents, and employees from claims arising out of the negligent use or re-use of the Documents & Data on such other project. Consultant shall be responsible and liable for its Documents & Data, pursuant to the terms of this Agreement, only with respect to the condition of the Documents & Data at the time they are provided to the City upon completion, suspension, abandonment, or termination. Consultant shall not be responsible or liable for any revisions to the Documents & Data made by any party other than Consultant, a party for whom the Consultant is legally responsible or liable, or anyone approved by the Consultant. 3.6.3.4 Indemnification – Documents and Data. Consultant shall defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers, agents and representatives free and harmless, pursuant to the indemnification provisions of this Agreement, for any alleged infringement of any patent, copyright, trade secret, trade name, trademark, or any other proprietary right of any person or entity in consequence of the use on the Project by City of the Documents & Data, including any method, process, product, or concept specified or depicted. 3.6.3.5 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City. 3.6.3.6 Confidential Information. The City shall refrain from releasing Consultant’s proprietary information ("Proprietary Information") unless the City's legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall notify Consultant of its intention to release Proprietary Information. Consultant shall have five (5) working days after receipt of the release notice to give City written notice of Consultant's objection to the City's release of Proprietary Information. Consultant shall indemnify, defend, and hold harmless the City, and its officers, directors, employees, agents, volunteers and representatives from and against all liability, loss, cost or expense (including attorney’s fees) arising out of a legal action brought to compel the release of Proprietary Information. City shall not release the Proprietary Information after receipt of an objection notice unless either: (1) Consultant fails to fully indemnify, defend (with City's choice of legal counsel), and hold City harmless from any legal action brought to compel such release; and/or (2) a final and non-appealable order by a court of competent jurisdiction requires that City release such information. 3.6.4 Cooperation; Further Acts. The Parties shall fully cooperate with one another and shall take any additional acts or sign any additional documents as may be necessary, Page 174 of 1128 Contract No. ___________ 13 Revised 07-2023 BBK 72500.00001\32374915.1 appropriate, or convenient to attain the purposes of this Agreement. 3.6.5 [Reserved] 3.6.6 Indemnification. 3.6.6.1 To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, agents, and representatives free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subconsultants or agents in connection with the performance of the Consultant’s Services, the Project or this Agreement, including without limitation the payment of all expert witness fees, attorney’s fees and other related costs and expenses except such loss or damage caused by the sole negligence or willful misconduct of the City. Consultant's obligation to indemnify shall survive expiration or termination of this Agreement and shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, volunteers, or representatives. 3.6.6.2 If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault. 3.6.7 Entire Agreement. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings, or agreements. 3.6.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Riverside County. 3.6.9 Time of Essence. Time is of the essence for each and every provision of this Agreement. 3.6.10 City's Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project. 3.6.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the Parties. 3.6.12 Assignment; Subcontracting. Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Consultant shall not subcontract any portion of the Services required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in Page 175 of 1128 Contract No. ___________ 14 Revised 07-2023 BBK 72500.00001\32374915.1 this Agreement. 3.6.13 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not workdays. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, volunteers, and representatives except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement. 3.6.14 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties. 3.6.15 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise. 3.6.16 No Third-Party Beneficiaries. There are no intended third-party beneficiaries of any right or obligation assumed by the Parties. 3.6.17 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.6.18 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid, nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer, or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. 3.6.19 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party. 3.6.20 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original. 3.6.21 Survival. All rights and obligations hereunder that by their nature are to continue after any expiration or termination of this Agreement, including, but not limited to, the indemnification obligations, shall survive any such expiration or termination. [SIGNATURES ON NEXT PAGE] Page 176 of 1128 Contract No. ___________ 15 Revised 07-2023 BBK 72500.00001\32374915.1 SIGNATURE PAGE TO PROFESSIONAL SERVICES AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT AND FLOCK GROUP INC dba FLOCK SAFETY IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on the day and year first above written. CITY OF PALM DESERT By: L.Todd Hileman City Manager Attest: By: Anthony J. Mejia City Clerk Approved as to form: By: Best Best & Krieger LLP City Attorney FLOCK GROUP INC dba FLOCK SAFETY, A CORPORATION By: Mark Smith General Counsel By: Mike Molina VP Legal, Deputy General Counsel QC: _____ Insurance: _____ Initial Review _____ Final Approval Page 177 of 1128 Page 178 of 1128 Page 179 of 1128 Page 180 of 1128 Page 181 of 1128 Page 182 of 1128 Page 183 of 1128 EXHIBIT "A" July 1, 2024 - June 30, 2029 Page 184 of 1128 Exhibit "A" Page 185 of 1128 Exhibit "A" Page 186 of 1128 CITY OF PALM DESERT CITY MANAGER’S OFFICE INTEROFFICE MEMORANDUM Date: February 15, 2024 To: Honorable Mayor and Councilmembers From: Anthony J. Mejia, City Clerk Subject: City Council Meeting of February 15, 2024 Below you will find questions received from the Mayor or Councilmembers and answers provided by City staff regarding tonight’s City Council meeting: ITEM 13h: APPROVE AGREEMENT WITH FLOCK SAFETY FOR AUTOMATED LICENSE PLATE RECOGNITION SOFTWARE SUBSCRIPTION FOR A TERM OF FIVE YEARS Q1: Is there an update on the economic impact, such as property recovery? A1: The ALPR software and CAD system are not designed to capture this information. This requires manual interpretation of reports to extract the data, which requires a significant number of staff hours from the Sheriff's department and will need time to compile this information to provide specifics. The current reporting has been the cumulative number of arrests and property recovered, which for ALPR Assisted Investigations are total arrests: 65, total amount recovered: $437,200. Q2: Any updates on the narcotics and weapons intercepted? A2: The narcotic and weapons recovery are to highlight significant incidents which is provided by the Public Safety Committee, and in the Palm Desert Significant Incident Reports. For example: On December 8, 2023, at 5:15 p.m., deputies received a flock notification of a stolen motorcycle on Monterey Avenue. The deputies located the motorcycle at The Shops on El Paseo. After a short foot pursuit, a male from Yucaipa was arrested for possession of a stolen motorcycle, a stolen handgun, and 13 grams of methamphetamine. Q3: Will Palm Desert continue to opt out of external agencies, so that only those with warrants can access? A3: The City has complied with state law since inception of the roll out of the program. Palm Desert data is only shared with California agencies as permitted by state law. Any outside-of-the-state requests will be sent in writing and reviewed by the Sheriff's Department. Authorization will be provided for that specific case and have a limited amount of time to access the data. Q4: Will we ensure that we maintain ownership of all data and opt into the transparency dashboard portal? A4: The City will continue to maintain ownership of all data. This agreement continues those requirements. Additionally, the City publishes the transparency portal data monthly via the Weekly Administrative Report and at the Public Safety Committee Meetings. The data is verified by city staff to ensure compliance with state law. Supplemental Q&A Memo-1 Page 187 of 1128 02/15/2024 Question & Answer Memo Page 2 of 2 ITEM 13q: RECEIVE AND FILE REPORT RELATED TO TRANSIENT OCCUPANCY TAX COMPLIANCE PROGRAM PERFORMED ON COLLECTIONS RECEIVED DURING FISCAL YEARS 2018-2019 THROUGH 2020-2021 AND WAIVE CERTAIN FINDINGS Q1: Is 30% a normal rate established for contingency fees? A1: Yes. For compliance programs we typically see anywhere from 30-35% as their rate in proposals. ITEM 13v: RATIFY A LETTER TO THE CALIFORNIA LEGISLATURE URGING THE PROTECTION OF DEDICATED REGIONAL EARLY ACTION PLANNING GRANTS PROGRAM FUNDING Due to recent changes in the Legislature’s leadership, the subject letter has been updated to reflect the current officeholders. There are no changes to the content of the letter. Supplemental Q&A Memo-2 Page 188 of 1128 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 15, 2024 PREPARED BY: Liberty Urban, Deputy Director of Finance REQUEST: RECEIVE AND FILE THE CITY OF PALM DESERT AUDITED ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2023 RECOMMENDATION: Receive and file the audited Annual Comprehensive Financial Report (ACFR) for the City of Palm Desert for the Fiscal Year ended June 30, 2023. BACKGROUND/ANALYSIS: Lance, Soll & Lunghard, LLP performed and completed the annual independent audit for the fiscal year ended June 30, 2023, for the City of Palm Desert, which includes the Palm Desert Housing Authority, in accordance with generally accepted auditing standards. In the auditor’s opinion, the basic financial statements present fairly, in all material respects, the financial position of the City of Palm Desert as of June 30, 2023, and the results of its operations and the cash flows of its proprietary funds for the year then ended in conformity with accounting principles generally accepted in the United States of America. In conducting their audit, the auditors test the City’s internal controls. Attached is the Report on Internal Controls over Financial Reporting and on compliance and other matters based on an audit of Financial Statements performed in accordance with Government Auditing Standards. The ACFR was submitted for the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program’s requirements, as it has for the past 26 years. Legal Review: This report has been reviewed by the City Attorney’s office. Appointed Body Recommendation: The Finance Committee received the Annual Comprehensive Financial Report (ACFR) at their meeting on January 22, 2024, and made a recommendation to receive and file the report as presented. Page 189 of 1128 City of Palm Desert Receive and File ACFR for Fiscal Year ended June 30, 2023 Page 2 of 2 FINANCIAL IMPACT: There is no fiscal impact associated with this action. ATTACHMENTS: 1. City of Palm Desert Audited Financial Report for Fiscal Year ended June 30, 2023 (Annual Comprehensive Financial Report) 2. Auditor’s Letter to the City Council 3. Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 4. Appropriations Limit Worksheet Page 190 of 1128 AnnualComprehensiveFinancial Report FISCAL YEAR 2022-2023 CITY OF PALM DESERT, CALIFORNIA Page 191 of 1128 ANNUAL COMPREHENSIVE FINANCIAL REPORT of the CITY OF PALM DESERT, CALIFORNIA For the Fiscal Year ended June 30, 2023 Prepared by the Finance Department City Treasurer/Director of Finance Veronica Chavez Deputy Director of Finance John Ramont Deputy Director of Finance Liberty Urban, CPA Finance Staff (in alphabetical order by positions and last names) ACCOUNTANT Mitchell Arbaugh ACCOUNTANT Arlene Arellano ACCOUNTANT Sarah Sullivan ACCOUNTING TECHNICIAN II Horacio Celaya ACCOUNTING TECHNICIAN II Kalaina Perez ACCOUNTING TECHNICIAN II Miguel Zepeda ADMINISTRATIVE ASSISTANT Sarah Castro FINANCE SUPERVISOR James Bounds MANAGEMENT ANALYST I Skky Garcia SENIOR CONTRACTS & GRANTS ANALYST Joe Barron Page 192 of 1128 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN Page 193 of 1128 CITY OF PALM DESERT, CALIFORNIA Annual Comprehensive Financial Report For The Fiscal Year Ended June 30, 2023 Table of Contents Page Number INTRODUCTORY SECTION Letter of Transmittal ................................................................................................................................................. i GFOA Certificate of Achievement for Excellence in Financial Reporting ............................................................... v List of Principal Officials ......................................................................................................................................... vii Organizational Chart ............................................................................................................................................. viii FINANCIAL SECTION INDEPENDENT AUDITORS’ REPORT .................................................................................................................. 1 MANAGEMENT’S DISCUSSION AND ANALYSIS ................................................................................................ 5 BASIC FINANCIAL STATEMENTS Statement of Net Position ............................................................................................................................... 17 Statement of Activities .................................................................................................................................... 18 Balance Sheet – Governmental Funds .......................................................................................................... 20 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ................................................................................................................. 23 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ...................................................................................................... 24 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........................................................................................................................... 27 Statement of Net Position – Proprietary Funds .............................................................................................. 28 Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds ................................................................................................................ 29 Statement of Cash Flows – Proprietary Funds .............................................................................................. 30 Statement of Fiduciary Net Position – Fiduciary Funds ................................................................................. 32 Statement of Changes in Fiduciary Net Position – Fiduciary Funds .............................................................. 33 Notes to Basic Financial Statements .............................................................................................................. 35 Page 194 of 1128 CITY OF PALM DESERT, CALIFORNIA Annual Comprehensive Financial Report For The Fiscal Year Ended June 30, 2023 Table of Contents Page Number REQUIRED SUPPLEMENTARY INFORMATION Miscellaneous Plan – Agent Multiple-Employer Schedule of Changes in Net Pension Liability and Related Ratios ................................................................................................ 88 Miscellaneous Plan- Agent Multiple – Employer Schedule of Plan Contributions ............................................ 90 Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios ................................................... 92 Schedule of Plan Contributions – OPEB ........................................................................................................... 94 Budgetary Comparison Schedule by Department – General Fund ................................................................... 96 Budgetary Comparison Schedule – Prop A Fire Tax ........................................................................................ 98 Budgetary Comparison Schedule –Housing Asset Fund .................................................................................. 99 Budgetary Comparison Schedule – Housing Authority ................................................................................... 100 Notes to Required Supplementary Information ............................................................................................... 101 SUPPLEMENTARY SCHEDULES Combining Balance Sheet – Other Governmental Funds ............................................................................... 103 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Other Governmental Funds ................................................................................................. 104 Other Governmental Funds – Special Revenue Funds .................................................................................. 107 Combining Balance Sheet – Other Special Revenue Funds .......................................................................... 113 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Other Special Revenue Funds ..................................................................................... 114 Budgetary Comparison Schedules – Special Revenue Funds: Traffic Safety ............................................................................................................................................. 119 Gas Tax..................................................................................................................................................... 120 Measure A ................................................................................................................................................. 121 Housing Mitigation Fees ........................................................................................................................... 122 Community Development Block Grant ...................................................................................................... 123 Child Care Program .................................................................................................................................. 124 Public Safety Police Grants ...................................................................................................................... 125 New Construction Tax ............................................................................................................................... 126 Planned Drainage ..................................................................................................................................... 127 Parks and Recreational Facilities ............................................................................................................. 128 Traffic Signals ........................................................................................................................................... 129 Page 195 of 1128 CITY OF PALM DESERT, CALIFORNIA Annual Comprehensive Financial Report For The Fiscal Year Ended June 30, 2023 Table of Contents Page Number Fire Facilities Restoration ...................................................................................................................... 130 Recycling................................................................................................................................................ 131 Energy Independence Loan ................................................................................................................... 132 Air Quality Management ........................................................................................................................ 133 Aquatic Center ....................................................................................................................................... 134 Cannabis Compliance ............................................................................................................................ 135 El Paseo Assessment District ................................................................................................................ 136 Landscape and Lighting Districts Nos. 1-17 .......................................................................................... 137 Affordable Housing Fund ....................................................................................................................... 138 Permanent Local Housing Allocation Grant ........................................................................................... 139 Other Governmental Funds – Capital Projects ............................................................................................ 141 Combining Balance Sheet – Other Capital Projects Funds ......................................................................... 142 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Other Capital Projects Funds .................................................................................... 146 Budgetary Comparison Schedules – Capital Project Funds: Capital Properties .................................................................................................................................. 150 Capital Projects Reserve ....................................................................................................................... 151 Drainage Facilities ................................................................................................................................. 152 Economic Development ......................................................................................................................... 153 Parks and Recreational Facilities .......................................................................................................... 154 Art in Public Places ................................................................................................................................ 155 Signalization ........................................................................................................................................... 156 Capital Golf ............................................................................................................................................ 157 Buildings................................................................................................................................................. 158 Other Governmental Funds – Debt Service Funds ...................................................................................... 159 Balance Sheet – Other Debt Service Fund .................................................................................................. 160 Statement of Revenues, Expenditures and Changes in Fund Balances – Other Debt Service Fund ........................................................................................... 161 Budgetary Comparison Schedule – Debt Service Fund: City Highland Undergrounding ............................................................................................................... 162 Internal Service Funds ................................................................................................................................. 163 Combining Statement of Net Position – Internal Service Funds .................................................................. 164 Combining Statement of Revenues, Expenses and Changes In Fund Net Position – Internal Service Fund ........................................................................................ 165 Combining Statement of Cash Flows – Internal Service Funds ................................................................... 166 Page 196 of 1128 CITY OF PALM DESERT, CALIFORNIA Annual Comprehensive Financial Report For The Fiscal Year Ended June 30, 2023 Table of Contents Page Number Custodial Funds ............................................................................................................................................ 167 Combining Statement of Net Position – All Custodial Funds ....................................................................... 168 Combining Statement of Changes in Fiduciary Net Position – All Custodial Funds .................................... 169 STATISTICAL SECTION Description of Statistical Section ........................................................................................................................ 171 Financial Trends: Net Position by Component .......................................................................................................................... 173 Changes in Net Position ............................................................................................................................... 174 Fund Balances of Governmental Funds ....................................................................................................... 177 Changes in Fund Balances of Governmental Funds ................................................................................... 178 Graphs – Changes in Fund Balances of Governmental Funds ................................................................... 179 Supplemental Historical General Fund Revenues ....................................................................................... 180 Supplemental Graph – Historical General Fund Revenues ......................................................................... 181 Supplemental Historical General Fund Expenditures .................................................................................. 182 Supplemental Graph – Historical General Fund Expenditures .................................................................... 183 Supplemental Historical General Revenue and Expenditures Per Capita ................................................... 184 Revenue Capacity: Assessed Value and Estimated Actual Value of Taxable Property .............................................................. 185 Historical Net Assessed Taxable Values Citywide and Graph – Assessed Valuation Growth ........................................................................................................ 186 Supplemental FY 2020 and 2019 Breakdown of Basic 1% Property Tax Rate Not In Redevelopment Project Area .......................................................................................... 187 Property Tax Rates Direct and Overlapping Property Tax Rates ................................................................ 188 Principal Property Taxpayers ....................................................................................................................... 189 Property Tax Levies and Collections ............................................................................................................ 190 Supplemental Top 25 Sales Tax Generators and Graph – Historical Sales Tax Trends ........................................................................................................ 191 Debt Capacity: Ratios of Outstanding Debt by Type ............................................................................................................ 192 Ratios of General Bonded Debt Outstanding ............................................................................................... 193 Supplemental Special Assessment Information ........................................................................................... 194 Direct and Overlapping Government Activities Debt .................................................................................... 195 Legal Debt Margin Information ..................................................................................................................... 196 Pledged-Revenue Coverage ........................................................................................................................ 197 Demographic and Economic Information: Demographic and Economic Statistics ......................................................................................................... 198 Principal Employers ...................................................................................................................................... 199 Supplemental Miscellaneous Statistics ........................................................................................................ 200 Page 197 of 1128 CITY OF PALM DESERT, CALIFORNIA Annual Comprehensive Financial Report For The Fiscal Year Ended June 30, 2023 Table of Contents Page Number Operating Information: Full-Time Equivalent City Government Employees by Function/Program ................................................... 201 Operating Indicators by Function/Program .................................................................................................. 202 Capital Asset Statistics by Function/Program .............................................................................................. 203 SUPPLEMENTAL REDEVELOPMENT CUSTODIAL STATISTICAL SECTION Redevelopment Custodial Project Areas Map ............................................................................................. 205 Tax Allocation Bond Issue Information ......................................................................................................... 206 Historical Tax Increment – Redevelopment Property Tax Trust Fund Summary ...................................................................................................................... 207 Page 198 of 1128 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN Page 199 of 1128 i CITY OF PALM DESERT 73-510 FRED WARING DRIVE PALM DESERT, CALIFORNIA 92260-2578 TEL: 760 346-0611 INFO@PALM-DESERT.ORG January 19, 2024 Residents of Palm Desert, Honorable Mayor and Members of the City Council The Finance Department is pleased to present the Annual Comprehensive Financial Report (ACFR) of the City of Palm Desert for the fiscal year ended June 30, 2023. The financial statements are prepared in accordance with generally accepted accounting principles (GAAP) and the Governmental Accounting Standards Board (GASB). We believe the data, as presented, is accurate in all material respects and is presented in a manner that fairly represents the financial position and changes in financial position of the City as measured by the financial activity of each of its funds. We also believe that all disclosures necessary to enable the reader to fully understand the City's financial activities have been presented. Responsibility for the accuracy, completeness and reliability of the information contained in this report rests with the City. The City of Palm Desert conducts an annual audit, which is performed by an independent certified public accountant. The independent audit of the City’s financial statements for fiscal year ended June 30, 2023 was conducted by Lance Soll & Lunghard, LLP. The auditor’s unmodified opinion on the basic financial statements is included in the Financial Section of this report. This is the most favorable opinion. As part of the City’s annual audit engagement, the auditors reviewed the City’s internal control structure as well as compliance with applicable laws and regulations. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute assurance, that the financial statements are free of any material misstatements. The results of the City’s annual audit for fiscal year ended June 30, 2023 provided no instances of material weaknesses in connection with the internal control structure or significant violations of applicable laws and regulations. As recipients of federal, state and county financial resources, the City may be required to undergo an annual single audit. For the fiscal year ended June 30, 2023, the City will have a single audit performed. Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it. PROFILE OF THE CITY OF PALM DESERT Located in Riverside County in the geographical center of the Coachella Valley, Palm Desert was incorporated on November 26, 1973, as a General Law City. On November 4, 1997, voters overwhelmingly approved Measure LL adopting a city charter. Page 200 of 1128 ii Under the provisions of the charter, the City of Palm Desert has full authority over its own municipal affairs including: bidding and contracting procedures; regulation of parks, libraries, and other facilities; certain fees; imposition of taxes; municipal zoning; salaries of officials and employees; municipal utilities; and municipal election procedures. The City operates under a Council-Manager form of government. The City Council is comprised of five members elected to four-year terms every two years by the residents of the City. The City has two-districts, District One includes neighborhoods in and around the Palm Desert Civic Center core, comprising about 20% of the City’s population which is represented by one (1) elected City Council member. District Two comprises 80% of the City’s population, which is represented by four (4) elected City Council members. Each December, the City Council selects the Mayor from among its members for a one-year term. The City Council appoints the City Manager and the City Attorney. The City operates as a “contract city,” primarily utilizing agreements with other governmental entities, private firms, and individuals to provide many services. Contracted services include: police protection through the County of Riverside; fire protection through Cal-Fire; animal control; road maintenance and construction services; legal services; landscape maintenance; and recreation program services. Palm Desert is a member of the California Joint Powers Insurance Authority that provides insurance coverage for the City. Water, sewage treatment and wastewater disposal are provided by the Coachella Valley Water District. Southern California Gas Company supplies natural gas to the City and electric power is provided by the Southern California Edison Company. Waste Disposal is provided by Burrtec Waste & Recycling Services. Telephone/Internet service is available through Frontier Communications. Cable television/Internet service is provided by Time Warner Cable/Spectrum. The City provides traditional municipal, public enterprise, and housing services as follows: Municipal Services Public improvements, infrastructure and maintenance Public art and community promotion Planning, zoning, building and engineering Housing and community development Code compliance Economic development and business advocacy Legislative, city clerk, visitor’s services, public information, general administration, fiscal services, human resources, and risk management Building permitting, inspections and services Public Enterprise Services Blended & Discrete Component Units Golf course Palm Desert Housing Authority Office complex Palm Desert Financing Authority Internal service Palm Desert Recreational Facilities Corporation The City maintains budgetary controls to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the General, Special Revenue, Debt Service, and Capital Project Funds are included in the annual appropriated budget. Budgetary amounts for Debt Service, Capital Projects, and certain Special Revenue Funds are adopted annually; however, these budgets are considered to be long-term in nature. Palm Desert Civic Center Page 201 of 1128 iii The City also maintains an encumbrance accounting system of purchase orders and contracts at the fund level as a means of accomplishing budgetary control. At each fiscal year end, open encumbrances are carried over to the new fiscal year. Purchase orders are reviewed to ensure that funds are available and that requests are properly authorized prior to being released to vendors. The adopted budget for fiscal year 2022-2023 was prepared in accordance with accounting principles generally accepted in the United States of America. As reflected in the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management. LOCAL ECONOMY The City comprises an area of approximately 26 square miles and, as of January 1, 2023, has a population of 50,615 according to data provided by the California Department of Finance. In addition to permanent residents, approximately 20,000 seasonal residents make Palm Desert their home for three to six months each year. The City has cultivated a sound foundation of general fund revenues including sales tax, transient occupancy tax, licenses and permits, property tax, and investment earnings. The City’s main revenue sources are transient occupancy taxes and sales tax. Due to the timing of the City’s incorporation, in 1973, and the implementation of Proposition 13, the City receives less than 7 percent of property taxes; therefore, the City relies heavily on sales tax and transient occupancy tax. As a community where economic, environmental, social, and cultural development flourishes, Palm Desert is a much sought-after place to visit and reside. Palm Desert is the first city in Riverside County to create a public art program and is home to numerous cultural attractions including: the McCallum Theatre for the Performing Arts, a 1,127-seat theater that hosts a wide variety of A-list entertainers, touring theatrical productions and arts-related educational programs; the Living Desert Zoo and Gardens, a 1,200-acre facility containing a wide array of plants and animals from desert regions around the world; and the Palm Desert Art in Public Places program, a museum without walls, featuring more than 150 works of art on permanent display throughout the city. Palm Desert’s active, five-star accredited Chamber of Commerce has more than 1,125 members who work to promote, support, and enhance business prosperity, civic vitality, and the quality of life within their community. Noted for its extensive array of retail options, including the world-famous upscale shopping destination of El Paseo, Palm Desert is home to a variety of malls and retail centers including The Shops at Palm Desert, Desert Crossing, The Gardens on El Paseo, and El Paseo Village. The internationally acclaimed Desert Willow Golf Resort, one of the nation’s premier municipal courses, boasts 36 holes of championship golf and stunning scenery in close proximity to first-class hotel accommodations and fine dining. In addition to being the home of the Coachella Valley’s only community college, College of the Desert, Palm Desert is the location of satellite campuses for both the University of California, Riverside, and California State University, San Bernardino, the region’s only public, four-year university. The State of California Employment Development Department Labor Market Information Division reported that the City of Palm Desert had an unemployment rate of 4.8% compared to Riverside County, which had a rate of 5.0%. Worldwide issues such as inflation and supply-chain Desert Willow Golf Resort Page 202 of 1128 Page 203 of 1128 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Palm Desert California For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2022 Executive Director/CEO v Page 204 of 1128 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN vi Page 205 of 1128 CITY OF PALM DESERT List of Principal Officials as of June 30, 2023 City Council - Manager Form of Government CITY COUNCIL KATHLEEN KELLY Mayor KARINA QUINTANILLA Mayor Pro-Tempore JAN C. HARNIK Council Member GINA NESTANDE Council Member EVAN TRUBEE Council Member CITY ADMINISTRATION TODD HILEMAN City Manager Robert W. Hargreaves Veronica Chavez City Attorney - Best, Best & Krieger, LLP Director of Finance/City Treasurer SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY TODD HILEMAN Executive Director vii Page 206 of 1128 City Manager Executive Assistant Public Affairs Manager Management Analyst I/II (Environmental ) HR Manager Director of Economic Development Records Coordinator Management Analyst I/II (2) Deputy Clerk I/ II Management Analyst I/II (Art) Assistant City Clerk Admin Assistant I/II City Clerk Senior Deputy Clerk Senior Admin Assistant Human Resources Analyst I/II (2) Office Assistant I/ II Communicatio ns Analyst I/II (2) Marketing Specialist Special Events Coordinator Admin Assistant I/II Deputy Director of Economic Development Admin Assistant Special Programs I/II Housing Manager Management Analyst I/II Housing Program Tech Director of Finance Deputy Director of Finance Deputy Director of Finance Finance Supervisor Senior Contracts and Grants Analyst Purchasing Coordinator Admin Assistant I/II Senior Network Engineer Accountant (2) Information Systems Manager Senior Information Systems Admin Senior GIS Admin Biz Systems Enterprise Accounting Technician Accounting Technician (5) Admin Assistant I/II Management Analyst I Assistant City Manager Receptionist Social Services Coordinator Management Analyst I/II City EngineerDirector of Public Works Director of Development Services Director of Capital Projects CITY OF PALM DESERT ORGANIZATION CHART viii Page 207 of 1128 Director of Public Works Deputy Director of Public Works Assistant City Manager Social Services Coordinator Management Analyst I/II Director of Development Services Deputy Director of Development Services Senior Admin Assistant Management Analyst I/II Executive Assistant Permit Center Supervior Code Compliance Office I/II (5) Permit Specialist I/II (4) Principal Planner Chief Building Official Code Compliance Supervisor Senior Building Inspector Office Assistant I/II Building Inspector I/II (3) Office Assistant I/II Senior Planner Associate Planner I/II Assistant Planner I/II Chief Inspector Land Development Tech Director of Capital Projects Admin Assistant I/II Capital Projects Manager (2) PW Inspector (3) Senior Project Manager Project Manager (2) Transportation Manager Business Operations Manager Project Manager Senior Managment Analyst Admin Assistant I/II (2) Traffic Signal Specialist Traffic Signal Tech I/II (2) Street Maintenance Supervisor Community Services Manager Admin Assistant I/II Office Assistant I/II Senior Maintenance Worker Maintenance Worker I/II/III (10) Supervising Landscape Supervisor Landscape Inspector (3) Project Manager Senior Facilities Specialist Project Technician Facilities Specialist City Engineer CITY OF PALM DESERT ORGANIZATION CHART ix Page 208 of 1128 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN x Page 209 of 1128 1611 E. Fourth Street, Suite 200 Santa Ana, CA 92701 (714) 569-1000 203 N. Brea Blvd, Suite 203 Brea, CA 92821 (714) 672-0022 21 Waterway Avenue, Suite 30089 The Woodlands, TX 77380 (936) 828-4587 2151 River Plaza Dr., Suite 150 Sacramento, CA 95833 (916) 503-9691 24422 Avenida de la Carlota, Suite 275 Laguna Hills, CA 92653 (949) 829-8299 www.lslcpas.com INDEPENDENT AUDITORS’ REPORT To the Honorable Mayor and Members of the City Council City of Palm Desert, California Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Palm Desert, California (the “City”), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof, for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter Change in Accounting Principle As described in Note 1 to the financial statements, in 2023, the City adopted new accounting guidance, GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements and GASB Statement No. 96, Subscription Based Information Technology Arrangements. Our opinion is not modified with respect to this matter. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Page 210 of 1128 To the Honorable Mayor and Members of the City Council City of Palm Desert, California In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison schedules for the General Fund and major special revenue funds, and the required pension and other postemployment benefits schedules, as listed on the table of contents, presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 2 Page 211 of 1128 To the Honorable Mayor and Members of the City Council City of Palm Desert, California Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual fund financial statements and schedules (supplementary information) are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 30, 2024, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance. Brea, California January 30, 2024 3 Page 212 of 1128 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN 4 Page 213 of 1128 CITY OF PALM DESERT MANAGEMENT’S DISCUSSION AND ANALYSIS Our discussion and analysis of the City of Palm Desert’s financial performance for the fiscal year ended June 30, 2023, provides: a comparison of current year to prior year ending results based on the government-wide financial statements; an analysis of the City’s overall financial position and results of operations to assist users in evaluating the City’s financial position; a discussion of significant changes that occurred in the funds; and significant budget variances. In addition, it describes the activities during the year for capital assets and long-term debt. We end our discussion and analysis with a description of known facts, decisions, and conditions that are expected to have a significant effect on the financial position or results of operations. Please read it in conjunction with the transmittal letter and the City’s financial statements. FINANCIAL HIGHLIGHTS The City’s total assets and deferred outflows exceeded its liabilities and deferred inflows by $825.09 million (net position). The City’s governmental activities net position increased by $11.51 million, and the net position of the business-type activities increased by $1.95 million. During the year, the City’s revenues were $131.59 million and expenses were $120.10 million in its governmental activities, compared to fiscal year 2022, where revenues were $125.46 million and expenses were $102.87 million. In the City’s business-type activities, expenses were $12.48 million, $1.62 million more than the $10.86 million in prior year expenses. Revenues generated from golf course green fees, merchandise sales, rental income and other revenues increased by $1.00 million compared to prior year, and Parkview Office Complex revenues for business-type activities revenues increased $132.70 thousand from prior year. The City’s governmental activities program revenues and general revenues increased by $6.13 million, while program expenses increased by $17.23 million. Business-type activities revenues increased $1.79 million, from $12.64 million to $14.43 million. Expenses increased from $10.86 million to $12.48 million. The City kept its General Fund expenditures within spending limits by $5.39 million. The revenues available for expenditures exceeded budget by $14.34 million. USING THIS ANNUAL REPORT This annual report consists of a series of financial statements. The Statement of Net Position and Statement of Activities (on pages 17, 18 and 19) provide information about the activities of the City as a whole and present a long-term view of the City’s finances. The fund financial statements start on page 20. For governmental activities, these fund statements tell how these services were financed in the short term as well as what remains for future spending. The fund financial statements also report the City’s operation in more detail than the government-wide statements by providing information about the City’s most significant funds and other funds. The remaining fiduciary fund statement provides financial information about activities for which the City acts solely as a trustee or agent for the benefit of those outside of the government. 5 Page 214 of 1128 REPORTING THE CITY AS A WHOLE The Statement of Net Position and the Statement of Activities: Our analysis of the City as a whole begins on page 17. One of the most important questions asked about the City’s finances is, “Is the City as a whole better off or worse off as a result of the year’s activities?” The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities in a way that answers this question. These statements include all assets and liabilities of the City using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid. These two statements report the City’s net position and changes in them. Net position is the difference between total assets and deferred outflows of resources less liabilities and deferred inflows, which is one way to measure the City’s financial health, or financial position. Over time, increases or decreases in the City’s net position are an indication of whether its financial health is improving or deteriorating. Other non-financial factors should be considered, however, such as changes in the economy that could cause a decrease in consumer spending. In the Statement of Net Position and the Statement of Activities, we separate City activities as follows: Governmental activities – Most of the City’s basic services are reported in this category, including general administration (city manager, city clerk, finance, etc.), housing and redevelopment, public safety (police and fire protection), public works, parks, recreation and culture departments. Property taxes, sales tax, transient occupancy tax, user fees, interest income, franchise fees, state and federal grants, contributions from other agencies, and other revenues finance these activities. Business-type activities – The City charges customers to cover all or most of the cost of certain services it provides. The City’s municipal golf course, Desert Willow, and the City’s Parkview Office Complex activities are reported in this category. Component unit activities – The City includes one separate legal entity in its report – the Palm Desert Recreational Facilities Corporation. Although legally separate, this “component unit” is important because the City is financially accountable for it. REPORTING THE CITY’S MOST SIGNIFICANT FUNDS Fund Financial Statements: The fund financial statements provide detailed information about the most significant funds and other funds, not the City as a whole. Some funds are required to be established by State law and by bond covenants. However, management established many other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, and other resources. The City has three types of funds: governmental, proprietary and fiduciary. Governmental funds – Most of the City’s basic services are reported in governmental funds, which focus on how money flows in and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. The differences of results in the Governmental Fund financial statements to those in the Government-wide financial statements are explained in a reconciliation following each Governmental Fund financial statement. 6 Page 215 of 1128 Proprietary funds – When the City charges customers for the services it provides, these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. The City’s enterprise funds are the same as the business-type activities we report in the government-wide statements, but provide more detail and information such as a statement of cash flows. Fiduciary funds – Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City of Palm Desert operations. The accounting used for fiduciary funds is much like that used for proprietary funds. THE CITY AS TRUSTEE Reporting the City’s Fiduciary Responsibilities: The City is the trustee, or fiduciary, for the Successor Agency to the Palm Desert Redevelopment Agency’s (Successor Agency) private-purpose trust fund and for certain custodial funds held on behalf of developers and its employees’ retiree service stipend fund. The City’s fiduciary activities are reported in separate Statement of Fiduciary Net Position, Statement of Changes in Fiduciary Net Position, Combining Statement of Statement of Assets and Liabilities-All Custodial Funds, and Combining Statement of Changes in Fiduciary Net Position-All Custodial Funds. We exclude these activities from the City’s other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. THE CITY AS A WHOLE During the fiscal year ending June 30, 2023, the City’s combined net position increased $4.15 million from $811.63 million to $815.78 million. A separate review of the net change in the governmental and business-type activities is provided for the reader. Our analysis focuses on the net position (Table 1) and changes in net position (Table 2) of the City’s governmental and business-type activities. 7 Page 216 of 1128 2023 2022 2023 2022 2023 2022 Current and restricted assets 397.71$ 373.47$ 11.31$ 11.08$ 409.02$ 384.55$ Noncurrent assets Receivables 3.44 1.23 5.89 5.90 9.33 7.13 Capital assets 422.26 424.81 69.55 67.52 491.81 492.33 TOTAL ASSETS 823.41 799.51 86.75 84.50 910.16 884.01 Deferred outflows of resources 18.10$ 6.75$ -$ -$ 18.10$ 6.75$ 841.51 806.26 Current liabilities 45.70 32.33 1.69 1.36 47.39 33.69 Noncurrent liabilities 45.28 24.79 0.23 - 45.51 24.79 TOTAL LIABILITIES 90.98 57.12 1.92 1.36 92.90 58.48 Deferred inflows of resources 5.22$ 16.53$ -$ -$ 5.22$ 16.53$ 96.20 73.65 Net position: Net investment in capital assets 416.68 422.40 69.24 67.33 485.92 489.73 Restricted 172.53 164.63 - - 172.53 164.63 Unrestricted 156.10 146.77 10.54 10.50 166.64 157.27 TOTAL NET POSITION 745.31$ 733.80$ 79.78$ 77.83$ 825.09$ 811.63$ Activities Activities Total TABLE 1 NE T P OSITION (IN MILLIONS) As of June 30, 2023 and 2022 Governmental Business-Type 8 Page 217 of 1128 The City’s governmental activities net position increased $11.51 million. The City’s net position is made up of three components: Net investment in capital assets; restricted net position; and unrestricted net position. For governmental activities, unrestricted net position, which represents the part of net position that can be used to finance day-to-day operations, accounted for 20 percent of the overall total net position. Unrestricted net position increased $9.33 million from $146.77 million in 2022 to $156.10 million in 2023, and restricted net position increased from $164.63 million to $172.53 million, an increase of $7.9 million. The increase in unrestricted net position was primarily driven by increases in program revenues, investment earnings and transient occupancy tax, as tourism continued to strengthen after pandemic closures were lifted and the City’s investment portfolio took advantage of high interest rates in both short-term savings vehicles and longer-term investments. A portion of these increases was offset by $7.29 million in decreases for operating grants and contributions compared to prior year. Total charges for services increased from $32.22 million in 2022 compared to $38.83 million in 2023, an increase of $6.13 million; and transient occupancy tax increased from $22.13 million in 2022 to $23.96 million in 2023, representing an increase of $1.83 million. Investment earnings saw an increase of $7.14 million from 2022 to 2023 and interest rates remained high through the end of fiscal year 2023. The decrease of $1.41 million in restricted net position was due to restricted special projects decreasing by $2.76 million from the prior year, while restricted capital projects funds increased by $1.35 million. During the year, construction on major projects continued; including the completion of the Council Chambers renovation and Cook Street resurfacing, progress on the Development Services Lobby renovation, and continuation of the annual street resurfacing program. Investment in capital assets in governmental funds decreased marginally by $5.72 million, slightly over 1 percent of the total balance. The City’s governmental activities total assets and deferred outflow of resources combined increased $35.25 million from $806.26 million in 2022 to $841.51 million in 2023. The majority of increases to total assets were in cash and investments, which increased by $22.04 million over the prior year. Some of this increase is related to stronger-than-expected revenue results in General Fund sales tax and charges for services, along with robust interest earnings for the fiscal year, whereas other portions of the increase, such as those in the Fire Tax fund, are related to the timing of cash outflows for yearend expenditures. Increases to deferred outflows made up the remainder of the $35.25 million increase, totaling $8.91 million in pension deferred outflows and $2.44 million in OPEB deferred outflows. Total governmental fund liabilities and deferred inflows combined increased by $22.55 million from $73.65 million in 2022 to $96.20 million in 2023. An increase of $33.86 million in total liabilities, mainly attributable to a pension liability increase of $19.09 million and an accounts payable increase of $15.92 million, was offset by a decrease in deferred inflows of $11.31 million, mostly due to increased deferred inflows from pensions. The net position of the business-type activities recognized an increase of $1.95 million, from $77.83 million during 2022 to $79.78 million during 2023. The main factor for the increase in net position was the addition of just over $2 million in capital assets, primarily new golf carts and equipment for Desert Willow Golf Course. Total assets in the business-type activities increased by $2.25 million from $84.50 million in 2022 to $86.75 million in 2023. The major increase was related to the addition of Desert Willow Golf Course golf carts and equipment mentioned above. Total liabilities in the business-type activities increased slightly by $0.56 million from $1.36 million in 2022 to $1.92 million in 2023. 9 Page 218 of 1128 2023 2022 2023 2022 2023 2022 REVENUES Program Revenues: Charges for services 38.83$ 32.22$ 13.63$ 12.41$ 52.46$ 44.63$ Operating grants and contributions 13.04 20.33 - - 13.04 20.33 Capital grants and contributions 4.67 4.83 0.09 0.19 4.76 5.02 General Revenues: Property taxes 13.89 12.94 - - 13.89 12.94 Transient occupancy tax 23.96 22.13 - - 23.96 22.13 Sales tax 26.37 27.50 - - 26.37 27.50 Other taxes 3.58 3.63 - - 3.58 3.63 Investment earnings 5.17 (1.97) 0.45 (0.10) 5.62 (2.07) Other revenues 2.08 3.85 0.26 0.14 2.34 3.99 TOTAL REVENUES 131.59 125.46 14.43 12.64 146.02 138.10 EXPENSES General Government 26.19 24.74 - - 26.19 24.74 Housing and redevelopment 13.25 9.63 - - 13.25 9.63 Public safety 40.76 37.40 - - 40.76 37.40 Parks, recreation and culture 19.11 8.88 - - 19.11 8.88 Public works 20.65 22.07 - - 20.65 22.07 Interest on long-term debt 0.15 0.15 - - 0.15 0.15 Golf Course - Desert Willow - - 11.07 9.91 11.07 9.91 Office Complex - Parkview - - 1.41 0.95 1.41 0.95 TOTAL EXPENSES 120.10 102.87 12.48 10.86 132.58 113.73 INCREASE (DECREASE) IN NET POSITION 11.49 22.59 1.95 1.78 13.44 24.37 BEGINNING NET POSITION 733.80 711.21 77.83 76.05 811.63 787.26 RESTATEMENT OF NET POSITION 0.02 - - - 0.02 - ENDING NET POSITION 745.31$ 733.80$ 79.78$ 77.83$ 825.09$ 811.63$ Activities Activities Total TABLE 2 CHANGES IN NET POSITION (IN MILLIONS) As of June 30, 2023 and 2022 Governmental Business-Type 10 Page 219 of 1128 Governmental Activities Total revenue increased by $6.13 million from $125.46 million to $131.59 million. Factors that contributed to the changes in revenues are as follows: Transient occupancy tax increased from $22.13 million in 2022 to $23.96 million in 2023, a slight increase of $1.83 million. The use of hotels and short-term rentals throughout the city continued to strengthen through 2023, and the implementation of a new online system for short-term rental registration and payment of transient occupancy taxes gave residents a new, convenient option for tax and fee remittance. The City’s sales tax decreased by $1.13 million from $27.50 million in 2022 to $26.37 million in 2023. Despite the year-over-year decrease, sales tax receipts still exceeded budget expectations by about $680 thousand for 2023. In 2023, the City’s investment earnings were $7.14 million more than the prior year, an increase from $(1.97) million in 2022 to $5.17 million in 2023, which was strongly correlated to the high interest rate environment. The City continued to utilize multiple investment vehicles throughout the year, taking advantage of high interest rates available in short-term investment pools such as the Local Agency Investment Fund (LAIF), and the California Asset Management Program (CAMP), along with the reinvestment of maturing investments into long-term investment products. Charges for services saw a strong increase from $32.22 million in 2022 to $38.83 million in 2023. Operating contributions and grants recognized a decrease of $7.29 million. This decrease was mainly the result of one-time public safety operating contributions and grants that were received in the prior year, but not in the current year. Capital contributions and grants decreased by $0.16 million, from $4.83 million in 2022 to $4.67 million in 2023. Total governmental expenses increased from $102.87 million in 2022 to $120.10 million in 2023, an increase of about 17 percent. Factors that contributed to the changes in expenditures are as follows: Expenditures in housing and redevelopment increased from $9.63 million in 2022 to $13.25 million in 2023, an increase of $3.62 million. Public safety expenditures increased by $3.36 million, from $37.40 million in 2022 to $40.76 million in 2023, related to increases in contracted police services of $1 million, and increases in contracted fire protection services of $1.90 million. The large increase in fire protection costs was related to the adoption of new memorandums of understanding for fire protection staff. Parks, recreation, and culture saw increases in expenditures of $10.23 million, from $8.8 million in 2022 to $19.11 million in 2023. 11 Page 220 of 1128 0%11% 20% 10% 31% 28% 2023 Governmental Activities Net (Expense) Revenue 1%7% 7% 25% 27% 33% 2022 Governmental Activities Net (Expense) Revenue Interest on long term debt Housing and redevelopment Parks, recreation and culture Public works Public safety General Government 0%3% 23% 11% 30% 33% 2023 Governmental Activities Net (Expense) Revenue The following schedule represents the net cost of providing services: Governmental Activities Net (Expense) Revenue (In Millions) Business-type Activities In the business-type activities, total revenues increased by 14 percent from $12.64 million to $14.43 million, a $1.79 million increase. The main factor for the change in total revenues was the overall increase in fee revenue, which recognized a $1.22 million growth from prior year. The Parkview Office Complex revenues increased slightly from $1.34 million in 2022 to $1.47 million in 2023 due to annual lease adjustments. Operating expenses for business-type activities increased by $1.62 million from $10.86 million to $12.48 million. The majority of the increase is related to the growth in operations at Desert Golf resort which recognized an $1.16 million increase in overall expenditures. Parkview Office Complex accounts for the remaining increase of $0.46 million due to tenant improvements completed throughout 2023. THE CITY’S FUNDS On page 20, the governmental funds balance sheet is shown. The combined fund balance of $341.59 million increased $13.34 million from $328.25 million. This total includes the General Fund balance of $120.92 million, which increased by $1.04 million from the prior year. The City’s General Fund balance has a non-spendable balance of $3.49 million, committed balance of $83.42 million, assigned 2023 2022 General government ($21.01) ($15.13) Housing and redevelopment (1.76) (3.11) Public safety (19.18) (12.43) Parks, recreation and culture (14.39) (3.33) Public works (7.07) (11.34) Interest on long term debt (0.15) (0.15) Total ($63.56) ($45.49) 12 Page 221 of 1128 balance of $19.28 million, and $14.72 million of unassigned fund balance. The increase in the General Fund’s balance was due to increases in sales tax and development fees as building remained strong throughout the City during fiscal year 2023. Other major fund balance changes are noted below: The Prop A Fire Tax Special Revenue Fund: The fund balance increased by $3.06 million. The Housing Asset Fund: The fund had an increase of $1.41 million mainly due to significant increases in investment earnings during the fiscal year. The Housing Authority Fund: The fund balance had a slight increase of $132 thousand. Capital Properties Fund: The fund balance increased $3.02 million from $48.19 million to $51.21 million. The increase represents the accumulation of fund balance needed to implement the City’s Capital Improvement Plan for the 2024 fiscal year. The remaining increase of $4.69 million is spread across multiple non-major funds. More detailed information about the combined fund balance reserves is presented in Note 16 to the financial statements. General Fund Budgetary Highlights Based upon recommendations from the staff, the City Council revised the budget several times during the year. Adjustments were made on a monthly basis as City staff requested additional appropriations to cover the cost of projects that either had change orders for additional work, or were underestimated. At mid-year, some adjustments were also requested to better meet departmental demands and adjust for any revenue fluctuations. At year-end, budgets were adjusted for unanticipated approved expenditures. All amendments that either increase or decrease appropriations are approved by the City Council. For the City’s General Fund, the actual ending revenues of $86.12 million were $14.34 million more than the final budgeted revenues of $71.79 million. Sales and transient occupancy taxes continue to be the top two revenue generators for the City, totaling $50.33 million or 58.27 percent of the total General Fund actual revenues. The original budget was $71.18 million compared to the final budget of $71.79 million, an increase of $0.61 million. The City increase in the final budget was related to better-than-expected increases in both building permit and plan check fee revenues. The General Fund actual ending expenditures of $85.11 million were $5.39 million less than the final budget of $90.50 million. There were changes in the original budget compared to the final budget during the year. The original expenditure budget was $71.18 million compared to the final budget of $90.50 million, a $19.32 million increase. During the year, the following represent the major changes between the original budget and the final budget: the City Clerk, Street Maintenance, and Public Buildings Operations/Maintenance budgets were increased to accommodate new staff and expanded city services. The budget for transfers out was increased by $16.91 million. These transfers were mainly to capital project funds to cover upcoming projects, including the Discover PD visitors’ center, Lupine Plaza, Turf Retrofit grants, the Development Services Lobby renovation, along with property purchases. 13 Page 222 of 1128 CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets At the end of 2023, the City had $491.79 million invested in a broad range of capital assets including land, streets, bridges, drainage systems, traffic lights, parks, buildings, artwork, vehicles, golf courses and equipment (See Table 3). This amount represents a net decrease (including additions and deductions) of $0.53 million over the prior year, due mainly to depreciation. 2023 2022 2023 2022 2023 2022 Land 82.29$ 82.06$ 53.31$ 53.31$ 135.60$ 135.37$ Construction-in-progress 10.12 18.45 - - 10.12 18.45 Buildings and improvements 82.59 78.28 82.59 78.28 other than buildings 12.51 13.34 12.51 13.34 Machinery and equipment 3.53 4.35 3.74 0.87 7.27 5.22 Infrastructure & right-of-way 241.19 241.66 - - 241.19 241.66 Lease assets 2.13 - - - 2.13 - Subscription assets 0.41 - - - 0.41 - TOTALS 422.26 424.80 69.56 67.52 491.82 492.32 Activities Activities Total TABLE 3 CAPITAL ASSETS AT YEAR-END (NET OF DEPRECIATION, IN MILLIONS) For the years ended June 30, 2023 and 2022 Governmental Business-Type 14 Page 223 of 1128 This year’s major additions included (in millions): Buildings $ 6.85 Improvements other than buildings 2.78 Equipment purchases 0.28 Infrastructure 1.04 Land/right of way 0.27 Lease assets – subscriptions 0.00 Subscription assets 0.54 $ 11.76 The City’s fiscal year 2024 adopted capital budget calls for an additional $78.88 million to be spent, plus continuing capital projects of $14.89 million from prior year, with the majority being spent on streets, infrastructure, buildings, parks, and golf course improvements. Projects will be funded with existing bond proceeds or funds that have been designated by an outside party for specific use. The City has adopted a bold capital improvement program to make significant capital improvements throughout the jurisdiction, and to catch up on projects that may have been deferred in the past. More detailed information about the City’s capital assets is presented in Note 1h and Note 5 to the financial statements. Debt At year-end, the City’s governmental activities had $48.80 million in bonds, claims, compensated absences, and pension liability versus $26.14 million last year, a increase of $22.66 million as shown in Table 4. The major increase was the City’s Net Pension liability which went from $19.59 million in 2022 to $38.68 million in 2023, an increase of $19.09 million. 2023 2022 2023 2022 2023 2022 Compensated absences 2.60$ 2.29$ -$ -$ 2.60$ 2.29$ Due to primary government 2.10 - - - 2.10 - Lease liability 2.20 2.41 - 2.20 2.41 Financed purchase - - 0.32 0.19 0.32 0.19 SBITA liability 0.40 - - - 0.40 - Claims and judgments payable 0.68 0.56 - - 0.68 0.56 Special assesments debt with government commitment 1.03 1.08 - - 1.03 1.08 Limited obligation improvement bonds 0.26 0.21 - - 0.26 0.21 OPEB liability (net)0.86 - - - - - Pension liability (net)38.68 19.59 - - 38.68 19.59$ TOTALS 48.80$ 26.14$ 0.32$ 0.19$ 48.27$ 26.33$ Activities Activities Total TABLE 4 OUTSTANDING DEBT AT YEAR-END (IN MILLIONS) For the years ended June 30, 2023 and 2022 Governmental Business-Type 15 Page 224 of 1128 The City was able to meet its current year debt obligations in a timely manner. Bonds that were issued in prior years have been used to finance various capital projects. The City’s business-type activities debt increased $0.13 million from $0.19 million to $0.32 million. Debt in the business-type activities is for amounts due back to the City for the financing of capital equipment. The City’s golf course used a city-funded financing option as an alternative to purchasing golf carts and maintenance equipment from cash flows derived through day-to-day operations. The City’s business-type activities were able to meet their current year debt obligation in a timely manner. More detailed information about the City’s long-term liabilities is presented in Note 6 through Note 10 to the financial statements. ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS In preparing the budget for fiscal year 2024, management and the City Council considered many ongoing economic impacts such as inflation, supply chain constraints, and labor issues associated with contracts. Keeping the well-being and safety of residents, visitors, and businesses as the highest priority, the City Council has maintained funding to sustain current service levels and supported efforts to ensure that much of the deferred maintenance owing to the pandemic is now being addressed. In addition, the City Council established strategic goals and objectives before the creation of the annual budget, which were given the highest priority during the budget development process. The City Council’s strategic goals and objectives include both capital and monetary investments to support the City’s economic stability. Most notably, the fiscal year 2024 budget includes a robust Capital Improvement Plan, which will be supported by a newly created Capital Projects department. Additionally, during fiscal year 2024, the City expects to transition the local library from a county-run facility to a municipal library with support from a new Library Services department. These considerations, among others, have been factored into the fiscal year 2024 budget to date. The City’s 2023-2024 Financial Plan can be found on the City’s website at www.cityofpalmdesert.org. CONTACTING THE CITY’S FINANCIAL MANAGEMENT This financial report is designed to provide our residents, taxpayers, customers, investors, and creditors with a general overview of the City’s finances and serves as a resource to demonstrate the stewardship and accountability for the public monies it receives. If you have questions about this report or need additional financial information, please contact the Finance Department at (760) 346-0611 or info@cityofpalmdesert.org. 16 Page 225 of 1128 Statement of Net Position Component Unit Governmental Business-Type Activities Activities Total Assets: Current assets: Cash and investments 295,587,088$ 14,100,518$ 309,687,606$ 1,216,690$ Receivables: Accounts 4,839,487 241,436 5,080,923 33,236 Notes 1,032,000 - 1,032,000 - Accrued interest 917,006 - 917,006 - Loans 12,415,466 - 12,415,466 - Leases 177,671 799,886 977,557 - Internal balances 4,179,888 (4,179,888) -- Prepaid costs 535,478 25,479 560,957 10,937 Deposits 20,000 -20,000 - Due from other governments 9,556,392 - 9,556,392 - Inventories 17,570 313,932 331,502 75,170 Property held for resale 61,516 -61,516 - Restricted assets: Cash with fiscal agent 68,373,658 - 68,373,658 - Noncurrent assets: Leases receivable 3,018,822 4,312,103 7,330,925 - Due from component unit 420,000 1,578,564 1,998,564 - Capital assets, not being depreciated/amortized 213,726,834 53,304,965 267,031,799 - Capital assets, net of depreciation/amortization 208,530,757 16,253,767 224,784,524 2,494,164 Total Assets 823,409,633 86,750,762 910,160,395 3,830,197 Deferred Outflows of Resources: Deferred outflows from pensions 13,243,801 - 13,243,801 - Deferred outflows from OPEB 4,860,869 - 4,860,869 - Total Deferred Outflows of Resources 18,104,670 - 18,104,670 - Liabilities: Current liabilities: Accounts payable 24,202,824 1,006,261 25,209,085 37,113 Accrued liabilities 737,981 232,666 970,647 137,002 Accrued interest 56,038 -56,038 3,594 Unearned revenue 15,460,263 333,836 15,794,099 188,193 Deposits payable 3,949,536 26,590 3,976,126 - Noncurrent liabilities: Due within one year: Compensated absences 500,000 - 500,000 - Lease liability 218,453 - 218,453 53,295 SBITA liability 274,401 - 274,401 - Long-term debt 74,000 86,217 160,217 - Claims and judgements 224,361 - 224,361 - Due in more than one year: Due to primary government --- 1,998,564 Compensated absences 2,101,028 - 2,101,028 - Lease liability 1,978,673 - 1,978,673 2,475,747 SBITA liability 125,182 - 125,182 - Claims and judgements 455,520 - 455,520 - Long-term debt 1,084,000 232,952 1,316,952 - Net OPEB liability 855,839 - 855,839 - Net pension liability 38,681,819 - 38,681,819 - Total Liabilities 90,979,918 1,918,522 92,898,440 4,893,508 Deferred Inflows of Resources: Deferred inflows from pensions 1,614,248 - 1,614,248 - Deferred inflows from OPEB 433,542 - 433,542 - Deferred inflows from leases 3,168,657 5,051,339 8,219,996 - Total Deferred Inflows of Resources 5,216,447 5,051,339 10,267,786 - Net Position: Net investment in capital assets 416,680,537 69,239,563 485,920,100 - Restricted for: Special projects 93,279,580 - 93,279,580 - Capital projects 79,251,472 - 79,251,472 - Unrestricted (deficit)156,106,349 10,541,338 166,647,687 (1,063,311) Total Net Position 745,317,938$ 79,780,901$ 825,098,839$ (1,063,311)$ June 30, 2023 Primary Government Palm Desert Recreational Facilities Corporation CITY OF PALM DESERT See Notes to Financial Statements.17 Page 226 of 1128 Statement of Activities Operating Capital Charges for Contributions Contributions Expenses Services and Grants and Grants Primary Government: Governmental activities: General government 26,185,065$ 2,678,135$ 781,822$ 1,711,324$ Housing and redevelopment 13,251,192 11,016,631 266,263 211,596 Public safety 40,753,734 18,831,126 2,393,227 346,836 Parks, recreation and culture 19,112,483 3,339,445 632,113 750,777 Public works 20,646,936 2,958,606 8,966,309 1,652,965 Interest on long-term debt 143,521 -- - Total Governmental Activities 120,092,931 38,823,943 13,039,734 4,673,498 Business-type activities: Desert Willow Golf Course 11,073,128 12,159,419 -99,154 Parkview Office Complex 1,409,321 1,473,376 -- Total Business-Type Activities 12,482,449 13,632,795 -99,154 Total Primary Government 132,575,380$ 52,456,738$ 13,039,734$ 4,772,652$ Component Unit: Palm Desert Recreational Facilities Corp.4,958,674$ 4,875,792$ -$-$ General Revenues: Taxes: Property taxes, levied for general purpose Transient occupancy taxes Sales taxes Franchise taxes Other taxes Investment earnings Miscellaneous Gain on sale of capital assets Total general revenues Change in net position Net position - beginning of year Restatement of net position Net position - beginning of year, as restated Net position - end of year CITY OF PALM DESERT Program Revenues Functions/Programs Year Ended June 30, 2023 See Notes to Financial Statements. 18 Page 227 of 1128 Net (Expenses) Revenues and Changes in Net Position Primary Government Component Unit Governmental Business-Type Activities Activities Total (21,013,784)$ -$(21,013,784)$ -$ (1,756,702) - (1,756,702) - (19,182,545) - (19,182,545) - (14,390,148) - (14,390,148) - (7,069,056) - (7,069,056) - (143,521) - (143,521) - (63,555,756) - (63,555,756) - - 1,185,445 1,185,445 - - 64,055 64,055 - - 1,249,500 1,249,500 - (63,555,756) 1,249,500 (62,306,256) - - - -(82,882) 13,887,103 - 13,887,103 - 23,959,975 - 23,959,975 - 26,373,509 - 26,373,509 - 3,574,273 - 3,574,273 - 14,330 -14,330 - 5,165,176 450,279 5,615,455 - 1,250,480 257,743 1,508,223 - 825,294 - 825,294 - 75,050,140 708,022 75,758,162 - 11,494,384 1,957,522 13,451,906 (82,882) 733,803,875 77,823,379 811,627,254 (960,750) 19,679 -19,679 (19,679) 733,823,554 77,823,379 811,646,933 (980,429) 745,317,938$ 79,780,901$ 825,098,839$ (1,063,311)$ Palm Desert Recreational Facilities Corporation See Notes to Financial Statements. 19 Page 228 of 1128 CITY OF PALM DESERT Balance Sheet Governmental Funds General Assets: Pooled cash and investments 124,938,153$ 19,058,450$ 38,807,689$ 16,258,989$ Receivables: Accounts 2,322,660 496,957 - 36,378 Assessments --- - Notes 1,032,000 -- - Interest 590,361 -19,553 - Loans 14,978 -11,178,813 - Leases Receivable 3,196,493 --- Prepaid costs 498,844 -551 - Deposits --- - Due from other governments 6,287,055 1,787,917 - - Due from other funds 1,136,962 -- - Advances to other funds 1,956,000 -- - Inventories --- - Property held for resale --61,516 - Due from component unit 420,000 -- - Restricted assets: Cash and investments with fiscal agent --2 3,758,346 Total Assets 142,393,506$ 21,343,324$ 50,068,124$ 20,053,713$ Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities: Accounts payable 12,918,122$ 5,604,693$ 33,692$ 28,404$ Accrued liabilities 575,858 -- 147,603 Unearned revenues --- 27,002 Deposits payable 3,352,482 -- 593,274 Due to other funds --- - Advances from other funds --- - Total Liabilities 16,846,462 5,604,693 33,692 796,283 Deferred Inflows of Resources: Unavailable revenue 1,461,875 - 19,551 - Leases 3,168,657 - -- Total Deferred Inflows of Resources:4,630,532 -19,551 - Fund Balances: Nonspendable 3,501,822 -551 - Restricted -15,738,631 50,014,330 7,381,942 Committed 83,424,843 -- 11,875,488 Assigned 19,282,496 - - - Unassigned 14,707,351 - - - Total Fund Balances 120,916,512 15,738,631 50,014,881 19,257,430 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 142,393,506$ 21,343,324$ 50,068,124$ 20,053,713$ June 30, 2023 Housing Asset Fund Housing Authority Prop A Fire Tax Special Revenue Funds See Notes to Financial Statements. 20 Page 229 of 1128 CITY OF PALM DESERT Balance Sheet Governmental Funds Assets: Pooled cash and investments Receivables: Accounts Assessments Notes Interest Loans Leases Receivable Prepaid costs Deposits Due from other governments Due from other funds Advances to other funds Inventories Property held for resale Due from component unit Restricted assets: Cash and investments with fiscal agent Total Assets Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other funds Advances from other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenue Leases Total Deferred Inflows of Resources: Fund Balances: Nonspendable Restricted Committed Assigned Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances June 30, 2023 Capital Projects Funds 1,633,533$ 85,737,530$ 286,434,344$ -902,488 3,758,483 -1,081,004 1,081,004 --1,032,000 257,841 49,251 917,006 -1,221,675 12,415,466 --3,196,493 -34,087 533,482 -20,000 20,000 -1,481,420 9,556,392 --1,136,962 -3,179,888 5,135,888 -17,570 17,570 --61,516 --420,000 64,615,310 - 68,373,658 66,506,684$ 93,724,913$ 394,090,264$ 394,640$ 5,223,273$ 24,202,824$ -14,520 737,981 14,901,154 532,107 15,460,263 -3,780 3,949,536 -1,136,962 1,136,962 -956,000 956,000 15,295,794 7,866,642 46,443,566 - 1,405,998 2,887,424 - -3,168,657 -1,405,998 6,056,081 -51,657 3,554,030 51,210,890 48,185,259 172,531,052 -3,692,757 98,993,088 - 32,522,600 51,805,096 - -14,707,351 51,210,890 84,452,273 341,590,617 66,506,684$ 93,724,913$ 394,090,264$ Other Governmental Funds Total Governmental Funds Capital Properties See Notes to Financial Statements. 21 Page 230 of 1128 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN 22 Page 231 of 1128 CITY OF PALM DESERT Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position Total fund balance for governmental funds 341,590,617$ Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets net of depreciation/amortization have not been included as financial resources in the governmental fund activity.419,648,133 Differences between expected and actual experiences, assumption changes and net differences between projected and actual earnings, and contributions subsequent to the measurement date for the postretirement benefits (pension and OPEB) are recognized as deferred outflows and deferred inflows of resources on the Statement of Net Position Deferred outflows-pension related 13,243,801 Deferred outflows-OPEB related 4,860,869 Deferred inflows-pension related (1,614,248) Deferred inflows-OPEB related (433,542) 16,056,880 Long-term debt, claims and judgements and net pension liability are not in the governmental fund activity: Bonds (1,158,000) Claims and judgments (679,881) Lease liability (2,197,126) SBITA Liability (399,583) Net OPEB liability (855,839) Net pension liability (38,681,819) (43,972,248) Interest on long-term debt is not accrued in governmental funds, but rather is recognized as an expenditure when due.(56,038) Unavailable revenues are not reported as revenues in governmental funds and thus have the effect of decreasing fund balances. For the City as a whole, however, the collection of these receipts increases the net position in the Statement of Net Position and results in revenues in the Statement of Activities. 2,887,424 Internal service funds are used by management to charge the costs of certain activities, such as equipment and compensated absences to individual funds. The assets and liabilities of the internal service fund must be added to the Statement of Net Position.9,163,170 Net Position of Governmental Activities 745,317,938$ June 30, 2023 See Notes to Financial Statements. 23 Page 232 of 1128 CITY OF PALM DESERT Statement of Revenues Expenditures and Changes in Fund Balances Governmental Funds Year Ended June 30, 2023 General Revenues: Taxes 70,722,443$ 9,169,242$ -$ -$ Special assessments collected - 2,138,587 - - Licenses and permits 2,539,460 - - - Intergovernmental revenues 1,615,519 1,457,526 - - Rental income 138,649 - - 8,737,330 Charges for services 1,918,866 3,100,323 - - Investment earnings 5,025,534 222,043 1,554,962 685,559 Fines and forfeitures 119,702 - - - Miscellaneous 568,556 - 38,780 - Total Revenues 82,648,729 16,087,721 1,593,742 9,422,889 Expenditures: Current: General government 22,880,727 - - - Public safety 23,304,557 16,970,960 - - Parks, recreation and culture 5,561,999 - - - Public works 6,879,202 -- - Housing --419,870 8,874,525 Capital outlay 685,071 660,442 56,074 - Debt service: Principal retirement 129,574 -- - Interest and fiscal charges 4,498 -- - Total Expenditures 59,445,628 17,631,402 475,944 8,874,525 Excess of Revenues Over (Under) Expenditures 23,203,101 (1,543,681) 1,117,798 548,364 Other Financing Sources (Uses): Transfers in 2,478,731 4,600,000 - - Transfers out (24,813,041) - - (415,990) Proceeds from sale of capital asset 452,687 - 293,804 - Contribution to other government (834,654) - -- Proceeds from subscriptions 529,156 - -- Total Other Financing Sources (Uses)(22,187,121) 4,600,000 293,804 (415,990) Net Change in Fund Balances 1,015,980 3,056,319 1,411,602 132,374 Fund Balances, Beginning of Year 119,880,853 12,682,312 48,603,279 19,125,056 Restatements 19,679 -- - Fund Balances, Beginning of Year, as restated 119,900,532 12,682,312 48,603,279 19,125,056 Fund Balances, End of Year 120,916,512$ 15,738,631$ 50,014,881$ 19,257,430$ Housing Asset Fund Housing Authority Prop A Fire Tax Special Revenue Funds See Notes to Financial Statements. 24 Page 233 of 1128 CITY OF PALM DESERT Statement of Revenues Expenditures and Changes in Fund Balances Governmental Funds Year Ended June 30, 2023 Revenues: Taxes Special assessments collected Licenses and permits Intergovernmental revenues Rental income Charges for services Investment earnings Fines and forfeitures Miscellaneous Total Revenues Expenditures: Current: General government Public safety Parks, recreation and culture Public works Housing Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Proceeds from sale of capital asset Contribution to other government Proceeds from subscriptions Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Restatements Fund Balances, Beginning of Year, as restated Fund Balances, End of Year Capital Projects Funds -$ 6,796,234$ 86,687,919$ - 1,480,385 3,618,972 - 571,716 3,111,176 - 3,638,318 6,711,363 - 82,981 8,958,960 - 3,724,605 8,743,794 2,203,742 2,437,890 12,129,730 - 7,385 127,087 - 244,817 852,153 2,203,742 18,984,331 130,941,154 1,540 2,014,679 24,896,946 - 384,731 40,660,248 - 12,146,635 17,708,634 824,708 7,583,978 15,287,888 -1,016,156 10,310,551 158,993 6,275,182 7,835,762 -136,000 265,574 -129,640 134,138 985,241 29,687,001 117,099,741 1,218,501 (10,702,670) 13,841,413 1,800,000 17,867,742 26,746,473 - (2,478,731)(27,707,762) - -746,491 - -(834,654) - -529,156 1,800,000 15,389,011 (520,296) 3,018,501 4,686,341 13,321,117 48,192,389 79,765,932 328,249,821 -- 19,679 48,192,389 79,765,932 328,269,500 51,210,890$ 84,452,273$ 341,590,617$ Capital Properties Other Governmental Funds Total Governmental Funds See Notes to Financial Statements. 25 Page 234 of 1128 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN 26 Page 235 of 1128 CITY OF PALM DESERT Reconciliation of the Revenues, Expenditures and Changes in the Fund Balances of Governmental Funds to the Statement of Activities Year Ended June 30, 2023 Net change in fund balances - total governmental funds 13,321,117$ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets are allocated over their estimated useful lives as depreciation/amortization expense. Capital outlay 13,151,163$ Loss on disposal and transfer of capital assets (3,572,869) Depreciation and amortization (11,460,183) (1,881,889) Bond and other debt proceeds provides current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position. Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. Bond principal payments 77,000 Subscriptions issued (529,156) Subscription and lease payments 398,389 (53,767) Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds: Net change in accrued interest for the current period (9,383) Net change in claims and judgments for the current period (115,408) (124,791) Pension obligation and OPEB expenses are expenditures in the governmental funds, but reduce the Net Pension Liability and Net OPEB Liability in the statement of net position: Pension expense 208,654 OPEB expense 735,400 944,054 Unavailable revenues are not reported as revenues in governmental funds and thus has the effect of decreasing fund balances. For the City as a whole, however, the collection of these receipts increases the net position in the Statement of Net Position and results in revenues in the Statement of Activities.(465,423) Internal service funds are used by management to charge the costs of certain activities, such as equipment management and self-insurance, to individual funds. The net revenues (expenses) of the internal service funds is reported with governmental activities.(244,917) Change in Net Position of Governmental Activities 11,494,384$ See Notes to Financial Statements. 27 Page 236 of 1128 CITY OF PALM DESERT Statement of Net Position Proprietary Funds Assets: Current Assets: Cash and investments 8,242,310$ 5,858,208 $ 14,100,518$ 9,152,744 $ Receivables: Accounts 134,734 106,702 241,436 - Lease 799,886 - 799,886 - Prepaid costs - 25,479 25,479 1,996 Inventories - 313,932 313,932 - Due from component unit - 1,578,564 1,578,564 - Total Current Assets 9,176,930 7,882,885 17,059,815 9,154,740 Noncurrent Assets: Lease receivable 4,312,103 - 4,312,103 - Nondepreciable capital assets - 53,304,965 53,304,965 11,821 Depreciable capital assets, net 5,295,210 10,958,557 16,253,767 2,597,637 Total Noncurrent Assets 9,607,313 64,263,522 73,870,835 2,609,458 Total Assets 18,784,243 72,146,407 90,930,650 11,764,198 Liabilities: Current Liabilities: Accounts payable 355,421 650,840 1,006,261 - Accrued liabilities - 232,666 232,666 - Unearned revenues 29,314 304,522 333,836 - Deposits payable 26,590 - 26,590 - Financed purchases -86,217 86,217 - Compensated absences - -- 500,000 Total Current Liabilities 411,325 1,274,245 1,685,570 500,000 Noncurrent Liabilities: Financed purchases - 232,952 232,952 - Advances from other funds - 4,179,888 4,179,888 - Compensated absences - -- 2,101,028 Total Noncurrent Liabilities -4,412,840 4,412,840 2,101,028 Total Liabilities 411,325 5,687,085 6,098,410 2,601,028 Deferred Inflows of Resources: Leases 5,051,339 - 5,051,339 - Total Deferred Inflows of Resources 5,051,339 -5,051,339 - Net Position: Net investment in capital assets 5,295,210 63,944,353 69,239,563 2,609,458 Unrestricted 8,026,369 2,514,969 10,541,338 6,553,712 Total Net Position 13,321,579$ 66,459,322$ 79,780,901$ 9,163,170$ June 30, 2023 Business-Type Activities - Enterprise Funds Major Funds Total Enterprise Funds Governmental Activities - Internal Service Funds Parkview Office Complex Desert Willow Golf Course See Notes to Financial Statements. 28 Page 237 of 1128 CITY OF PALM DESERT Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds Operative Revenues: Fees and rentals 1,473,376$ 10,480,418$ 11,953,794$ -$ Miscellaneous - 257,743 257,743 - Merchandise sales - 1,679,001 1,679,001 - Total Operating Revenues 1,473,376 12,417,162 13,890,538 - Operating Expenses: General and administrative 146,143 2,954,930 3,101,073 425,084 Cost of merchandise - 725,418 725,418 - Maintenance and operations 948,002 6,050,549 6,998,551 394,955 Depreciation and amortization 315,176 1,224,975 1,540,151 751,260 Total Operating Expenses 1,409,321 10,955,872 12,365,193 1,571,299 Operating Income (Loss)64,055 1,461,290 1,525,345 (1,571,299) Nonoperating Revenues (Expenses) Interest revenue 331,447 118,832 450,279 286,290 Interest expense - (117,256) (117,256) - Gain on disposal of capital assets - -- 78,803 Total Nonoperating Revenues (Expenses) 331,447 1,576 333,023 365,093 Income (Loss) Before Capital Contributions & Transfers 395,502 1,462,866 1,858,368 (1,206,206) Capital Contributions - 99,154 99,154 - Transfers In - -- 961,289 Change in Net Position 395,502 1,562,020 1,957,522 (244,917) Net Position, Beginning of Year 12,926,077 64,897,302 77,823,379 9,408,087 Net Position, End of Year 13,321,579$ 66,459,322$ 79,780,901$ 9,163,170$ Year Ended June 30, 2023 Business-Type Activities - Enterprise Funds Major Funds Total Enterprise Funds Governmental Activities - Internal Service Funds Parkview Office Complex Desert Willow Golf Course See Notes to Financial Statements. 29 Page 238 of 1128 CITY OF PALM DESERT Statement of Cash Flows Proprietary Funds Cash Flows from Operating Activities: Receipts from customers 1,364,506$ 12,067,646$ 13,432,152$ -$ Payments to suppliers (784,472) (9,603,099) (10,387,571) (401,470) Cash paid to employees for services - - - (113,394) Net Cash Provided (Used) by Operating Activities 580,034 2,464,547 3,044,581 (514,864) Cash Flows from Noncapital and Related Financing Activities: Cash received from other funds - - 961,289 Repayment of advances from other funds - (500,000)(500,000) - Advance received from other funds 3,179,888 3,179,888 - Net Cash Provided by (Used) Noncapital and Related Financing Activities -2,679,888 2,679,888 961,289 Cash Flows from Capital and : Related Financing Activities Purchases of capital assets - (3,583,646)(3,583,646) (90,621) Principal paid financed purchases - (222,721)(222,721) - Interest paid on financed purchases (117,256)(117,256) - Proceeds from sale of capital assets - 453,616 453,616 86,265 Net Cash Used by Capital and Related Financing Activities -(3,470,007)(3,470,007) (4,356) Cash Flows from Investing Activities: Interest and dividends 331,447 118,832 450,279 286,290 Net Cash Provide by (Used) Investing Activities 331,447 118,832 450,279 286,290 Net Increase (Decrease) in Cash and Cash Equivalents 911,481 1,793,260 2,704,741 728,359 Cash and Cash Equivalents, Beginning of Year 7,330,829 4,064,948 11,395,777 8,424,385 Cash and Cash Equivalents, End of Year 8,242,310$ 5,858,208$ 14,100,518$ 9,152,744$ Year Ended June 30, 2023 Governmental Activities - Internal Service Funds Total Enterprise Funds Business-Type Activities - Enterprise Funds Major Funds Parkview Office Complex Desert Willow Golf Course See Notes to Financial Statements. 30 Page 239 of 1128 CITY OF PALM DESERT Statement of Cash Flows Proprietary Funds Year Ended June 30, 2023 Governmental Activities - Internal Service Funds Total Enterprise Funds Business-Type Activities - Enterprise Funds Major Funds Parkview Office Complex Desert Willow Golf Course Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating income (loss)64,055$ 1,461,290$ 1,525,345$ (1,571,299)$ Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Depreciation and amortization 315,176 1,224,975 1,540,151 751,260 Changes in assets and liabilities: (Increase) decrease in receivables, net (31,074) 15,234 (15,840) - (Increase) decrease in lease receivable, net (33,358) - (33,358)- (Increase) decrease in prepaid costs - 28,963 28,963 4,150 (Increase) decrease in due from other governments - -- - (Increase) decrease in inventories - (45,672)(45,672) - (Increase) decrease in due from component unit - (383,040)(383,040) - Increase (decrease) in accounts payable and accrued liabilities 309,673 144,507 454,180 (10,665) Increase (decrease) in deposits payable - - - - Increase (decrease) in unearned revenue (44,438) 18,290 (26,148) - Increase (decrease) in compensated absences - - - 311,690 Total Adjustments 515,979 1,003,257 1,519,236 1,056,435 Net Cash Provided (Used) by Operating Activities 580,034$ 2,464,547$ 3,044,581$ (514,864)$ Noncash Items: Capital Contributions -$ 99,154$ 99,154$ -$ See Notes to Financial Statements. 31 Page 240 of 1128 CITY OF PALM DESERT Statement of Fiduciary Position Fiduciary Funds Private- Purpose Trust Custodial Funds Assets: Pooled cash and investments 7,620,166$ 29,574,317$ Receivables: Assessments 35,481,134 - Accrued interest 699 164 Prepaid costs - 1,223,948 Due from other governments 24,995 - Restricted assets: Cash and investments with fiscal agents 2,948,748 12,493,814 Capital assets: Capital assets, not being depreciated - 17,226,397 Total Assets 46,075,742 60,518,640 Liabilities: Accounts payable - 704,122 Accrued interest - 1,750,413 Deposits payable 35,481,134 20,000 Due to external parties/other agencies 7,638,549 - Long-term liabilities: Long-term debt due in one year - 19,915,000 Long-term debt due in more than one year - 142,971,365 Total Liabilities 43,119,683 169,868,487 Deferred Inflows of Resources: Deferred charge on refunding - 273,476 Total Deferred Inflows or Resources - 273,476 Net Position: Restricted for dissolution of former RDA - (109,623,323) Restricted for other purposes 2,956,059 - Total Net Position 2,956,059$ (109,623,323)$ Successor Agency to the Palm Desert Redevelopment Agency June 30, 2023 See Notes to Financial Statements.32 Page 241 of 1128 CITY OF PALM DESERT Statement of Changes in Fiduciary Net Position Fiduciary Funds Year Ended June 30, 2023 Additions: Taxes 3,054,242$ 23,501,644$ Investment income 201,683 261,102 Contributions from City 834,654 - Other - - Gain sale of capital assets - 5,485,088 Total Additions 4,090,579 29,247,834 Deductions: Housing and development - 945,727 Administrative expenses 50,179 - Contractual services 1,216,447 - Interest expense 1,446,244 6,287,959 Payments to bondholders 1,305,000 - Contributions to other governments - 12,167,792 Total Deductions 4,017,870 19,401,478 Changes in Net Position 72,709 9,846,356 Net Position, Beginning of Year 10,674,106 (119,469,679) Restatement (Note 15) (7,790,756) - Net Position, Beginning of Year, as restated 2,883,350 (119,469,679) Net Position, End of Year 2,956,059$ (109,623,323)$ Private- Purpose Trust Successor Agency to the Palm Desert Redevelopment Agency Custodial Funds See Notes to Financial Statements.33 Page 242 of 1128 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN 34 Page 243 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Description Of The Reporting Entity The City of Palm Desert was originally incorporated on November 26, 1973, as a General Law City. In December 1997, Measure LL was enacted following a vote by Palm Desert residents, which adopted a City Charter. The City operates under a Council-Manager form of government and provides the following services: public safety (police and fire), highways and streets, public improvements, community development (planning, building and zoning) and general administrative services. The City has defined its reporting entity in accordance with accounting principles generally accepted in the United States of America which provides guidance for determining which governmental activities, organizations and functions should be included in the reporting entity. The Basic Financial Statements present information on the activities of the reporting entity, which include the City of Palm Desert (the primary government) and its component units, entities for which the government is considered financially accountable. Accounting principles generally accepted in the United States of America require that the component units be separated into blended or discretely presented units for reporting purposes. The following criteria were used in determination of blended component units: appointment of the governing board and fiscal dependence. Although legally separate entities, blended component units are, in substance, part of the City’s operations. Therefore, they are reported as part of the primary government. Discretely presented component units are reported in a separate column in the basic financial statements to emphasize that they are legally separate from the City. Blended Component Units Following are descriptions of legally separate component units for which the City is financially accountable that are blended with the Primary Government. The governing bodies of these component units are substantially the same with operational responsibility as the City and provides a financial benefit. The Palm Desert Housing Authority (Housing Authority) was established by the City Council in January 1998, and is responsible for the administration of providing affordable housing in the City. The Housing Authority transactions are reported in the governmental funds balance sheet as a major fund. The Palm Desert Financing Authority (Financing Authority) was formed on January 26, 1989. The purpose of the Financing Authority is to issue debt and loan the proceeds to the City and Agency. The Financing Authority’s capital related transactions are reported in the governmental fund financial statements in the capital projects funds, and the collection of assessments and payments of debt service is recorded in the fiduciary funds. The City Council of Palm Desert is the governing body for the Housing Authority and Financing Authority. Separate financial statements are not issued for the Housing Authority and Financing Authority. Discretely Presented Component Unit The Palm Desert Recreational Facilities Corporation (Corporation) was incorporated on February 25, 1997. The purpose of the Corporation is to lease, operate and manage a restaurant and bar in the Desert Willow Golf Course in Palm Desert, California. The Board of Directors of the Corporation appoints an executive director to administer operations. The Corporation is in a separate column to emphasize that it is legally separate from the City and is financially accountable to the City. The two-member board governing the Corporation is appointed by the City Council, the City has authority to approve the Corporation’s budget, and the City must approve any debt issued. Complete financial statements of the Component Unit can be obtained from the City’s administrative offices. 35 Page 244 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Presentation Government-Wide Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Interfund services provided and used are not eliminated in the process of consolidation. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct and indirect expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Expenses reported for functional activities include allocated indirect expenses. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Fund Financial Statements The accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts that constitute its assets, liabilities, deferred inflows of resources, fund equity, revenues and expenditures/expenses. Funds are organized into three major categories: governmental, proprietary and fiduciary. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operation fund of the City or meets the following criteria: a. Total assets plus deferred outflows of resources, liabilities plus deferred inflows of resources, revenues or expenditures/expenses of that individual governmental or enterprise fund are at least 10% of the corresponding total for all funds of that category or type; and; b. Total assets plus deferred outflows of resources, liabilities plus deferred inflows of resources, revenues or expenditures/expenses of the individual governmental fund or enterprise fund are at least 5% of the corresponding total for all governmental and enterprise funds combined; and; c. The government has determined that a fund is important to the financial statement user. The funds of the financial reporting entity are described below: Governmental Fund Types General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue resources (other than major capital projects) that are legally restricted to expenditures for specified purposes. 36 Page 245 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Debt Service Funds - Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term obligation principal, interest and related costs. Capital Projects Funds - Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities. Proprietary Fund Types Enterprise Funds - The Enterprise Funds account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the City Council is that the costs (expenses including depreciation) of providing goods and services to the general public on a continuing basis be financed or recovered primarily through user charges. The Primary Government’s Enterprise funds consist of the Parkview Office Complex and the Desert Willow Golf Course. Desert Willow Golf Course is operated by a management company. The discretely presented Component Unit’s fund consists of the Palm Desert Recreational Facilities Corporation, also operated by a management company. Internal Service Funds - The Internal Service Funds account for financial transactions related to replacement of City-owned vehicles and equipment and to fund compensated absences. These services are provided to other departments or agencies of the City on a cost reimbursement basis. Fiduciary Fund Types Private-Purpose Trust Fund The Successor Agency to the Palm Desert Redevelopment Agency Private Purpose Trust Fund is used to account for the activities of the Successor Agency to the Palm Desert Redevelopment Agency. Custodial Funds The Custodial, Special Assessment and Treasurers 1911 Bond Act Funds are used to account for assets held by the City in a custodial capacity as a trustee. These assets include deposits placed with the City by individuals, as well as deposits from assessment district’s property owners. These deposits are reduced by payments to individuals. The City’s Retiree Service Stipend Fund is used to account for assets held to pay for the retiree service stipend. The Treasures 1991 Bond Act Fund is used to account for assets held for the Bond Act. The major funds are as follows: Governmental Funds The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. The Prop A Fire Tax Special Revenue Fund is used to account for all revenues derived from tax collected within the City for upgrading fire protection and prevention. Its use is restricted to obtaining, furnishing, operating and maintaining fire protection and prevention services (currently under contract with Riverside County Fire Department) equipment or apparatus. This fund is reported as a major fund because the tax collected is a voter approved measure. 37 Page 246 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The Housing Asset Special Revenue Fund is used to account for any funds generated from housing assets of the former Redevelopment Agency to be used for projects that benefit low and moderate income families. The Housing Authority Special Revenue Fund is used to account for revenues and expenditures related to rental units owned by the Housing Authority, established in January 1998. This fund is determined to be important to the users of the financial statements and determined to be a major fund. The Capital Properties Capital Projects Fund is used to account for the cost of city owned properties that will either be sold or for the construction of public facilities, and the proceeds of bond funds for capital related properties. Proprietary Fund The Parkview Office Complex Fund is used to account for rent received from the City owned office complex. The Desert Willow Golf Course Fund is used to account for the fees collected and expenses incurred in connection with operating the municipal golf course in the City of Palm Desert. C.Measurement Focus and Basis of Accounting Measurement focus is a term used to describe which transactions are recorded within the various financial statements. Basis of accounting refers to when transactions are recorded regardless of the measurement focus applied. On the government-wide Statement of Net Position and the Statement of Activities, both governmental and business-like activities are presented using the economic resources measurement focus. The accounting objectives of the economic measurement focus are the determination of operating income, changes in net position (or cost recovery), financial position and cash flows. All assets, deferred outflows of resources, liabilities and deferred inflows of resources (whether current or noncurrent) associated with their activities are reported. In the fund financial statements, the “current financial resources” measurement focus or the “economic resources” measurement focus is used as appropriate: 1.All governmental funds utilize a “current financial resources” measurement focus. Only current financial assets, deferred outflows of resources, current liabilities and deferred inflows of resources are generally included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period. 2.The proprietary fund and private purpose trust fund and custodial funds utilize an “economic resources” measurement focus. Proprietary fund and private purpose trust fund equity and custodial funds are classified as net position. Basis of Accounting In the government-wide Statement of Net Position and Statement of Activities, both governmental and business- like activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred, or economic asset used. Revenues, expenses, gains, losses, assets and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. 38 Page 247 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting. Under this modified accrual basis of accounting, revenues are recognized when “measurable and available.” Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or soon enough thereafter to pay current liabilities. Revenues that are susceptible to accrual include property taxes and special assessments that are levied for and due for the fiscal year and collected within 60 days after year-end. Licenses, permits, fines, forfeits, charges for services and miscellaneous revenues are recorded as governmental fund type revenues when received in cash because they are not generally measurable until actually received. Revenue from taxpayer assessed taxes, such as sales taxes, are recognized in the accounting period in which they became both measurable and available to pay liabilities of the current period. Grants and similar items are recognized as soon as all eligibility requirements imposed by the provider have been met. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Interfund activity has been eliminated from the general government function for the government-wide financial statements except for charges between the government’s Desert Willow Golf Course and Parkview Office Complex funds and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues for the various functions considered. The accrual basis of accounting is followed by the proprietary fund and private purpose trust fund. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred, or economic assets are used. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing goods and services in connection with a proprietary fund’s principal ongoing operations. The principal revenue of the Desert Willow Golf Course and Parkview Office Complex Enterprise Funds are charges to customers for use of the golf course and rental fees. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. D.Appropriations Limit Under Article XIII-B of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller or returned to the taxpayers through revised tax rates, revised fee schedules or other refund arrangements. For the fiscal year ended June 30, 2023, proceeds of taxes did not exceed appropriations. E.Cash and Investments For purposes of the statement of cash flows, the City has defined cash and investments to include cash on hand, demand deposits, investments held in various instruments, and investments held in the California Local Agency Investment Fund (LAIF), California Asset Management Program (CAMP) and Riverside County Treasurer’s Pooled Investment Fund. F.Investments Investments are reported in the accompanying financial statements at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation, maturity, or sale of investments. 39 Page 248 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G. Property Held for Resale The land held for resale is recorded in the Housing Asset Fund as property held for resale at the lower of cost or market. At June 30, 2023, the cost of the property held for resale for various housing properties in Palm Desert totaled $61,516. H. Capital Assets and Depreciation Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, traffic signals, drainage systems and similar items), are reported in the applicable governmental or business-type activities column in the government-wide financial statements. Capital assets are defined by the City as assets with an initial cost above the amounts described in the table below and an estimated life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The City has reported general infrastructure assets acquired in prior and current years. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Property, plant and equipment of the primary government, as well as the component units, are depreciated using the straight-line method over the following estimated useful lives: I. Inventories, Prepaid Costs and Deposits Inventory in the amount of $313,932 and $75,170, for the Desert Willow Golf Course Enterprise Fund (Primary Government) and Palm Desert Recreational Facilities Corporation (Component Unit), respectively, are reported at lower of cost or market. These inventories are held for resale. Inventory in the amount of $17,570 in the Other Governmental Funds are also reported at lower of cost or market. Inventory and prepaid costs are recorded as an expenditure when consumed rather than purchased. Certain payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid costs in the government-wide and fund financial statements. Deposit of $20,000 in other governmental funds represents security deposit on rental of commercial space. 40 Page 249 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) J. Property Tax Calendar Property taxes are assessed and collected each fiscal year according to the following property tax calendar: Lien date: January 1 Levy date: July 1 to June 30 Due date: November 1 - 1st Installment March 1 - 2nd Installment Delinquent date: December 10 - 1st Installment April 10 - 2nd Installment Under California law, property taxes are assessed and collected by the counties up to 1% of assessed value, plus other increases approved by the voters. The property taxes go into a pool and are then allocated to the cities based on complex formulas prescribed by state statutes. The City accrues only those taxes, which are received within 60 days after the year-end. The City is a participant in the Teeter Plan under the California Revenue and Taxation Code. The County of Riverside has responsibility for the collection of delinquent taxes and the City receives 100% of the levy. K. Leases Lessee The City is a lessee for a noncancellable lease of equipment. The City recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the government-wide financial statements. The City recognizes lease liabilities with an initial, individual value of $10,000 or more. At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life. Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise. The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the statement of net position. Lessor The City is a lessor for a noncancellable lease of a building. The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental fund financial statements. 41 Page 250 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term. Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. The City uses its estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee. The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. L. Subscription-Based Information Technology Arrangements The City is a subscriber for a noncancellable subscription of information technology services. The City recognizes a subscription liability and an intangible right-to-use subscription asset (subscription asset) in the government-wide financial statements. The City recognizes subscription liabilities with an initial, individual value of $5,000 or more. At the commencement of a subscription, the City initially measures the subscription liability at the present value of payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by the principal portion of subscription payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for subscription payments made at or before the subscription commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straight-line basis over its useful life. Key estimates and judgments related to subscriptions include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) lease term, and (3) subscription payments. The City uses the interest rate charged by the vendor as the discount rate. When the interest rate charged by the vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for subscriptions. The subscription term includes the noncancellable period of the subscription. Subscription payments included in the measurement of the subscription liability are composed of fixed payments that the City is reasonably certain to exercise. The City monitors changes in circumstances that would require a remeasurement of its subscriptions and will remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability. Subscription assets are reported with other capital assets and subscription liabilities are reported with long-term debt on the statement of net position. 42 Page 251 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M.Deferred Outflows/Inflows of Resources In addition to assets, the statement of net position and the governmental funds balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to future periods and so will not be recognized as an outflow of resources (expense/expenditure) until that time. The City has the following items that qualify for reporting in this category: Deferred amount on refunding. A deferred amount on refunding results from the difference in the carrying value of the refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. Deferred outflows related to pensions and OPEB. This amount is equal to employer contributions made after the measurement date of the net pension liability and net OPEB liability/(asset). Deferred outflows related to pensions resulting from the difference in projected and actual earnings on investments of the pension plan fiduciary net position. These amounts are amortized over five years. Deferred outflows of resources related to pensions arising from a change in assumptions. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the plan, which is 3.0 years. In addition to liabilities, the statement of net position and the governmental funds balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to future periods and will not be recognized as an inflow of resources (revenue) until that time. The City has the following items that qualify for reporting in this category: Deferred inflows from unavailable revenue, which arises under a modified accrual basis of accounting is reported only in the governmental fund balance sheet. The governmental funds report unavailable revenues from the following sources: rent, investment income, grants, notes receivables collections and reimbursements. These amounts are unavailable and recognized as an inflow of resources in the period that the amounts become available. Deferred inflows related to pensions for differences between expected and actual experience. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the plan, which is 3.0 years. Deferred inflows from pensions resulting from changes in assumptions. These amounts are amortized over a closed period equal to the average expected remaining service lives of all employees that are provided with pensions through the plan, which is 3.0 years. Deferred inflows from lease related items for the amount of the lease receivable plus any lease payments related to future periods, less any lease incentives paid to, or on behalf of, the lessee at or before the commencement of the lease term. Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. 43 Page 252 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The recognition period differs depending on the source of the gain or loss: Net difference between projected and actual earnings on OPEB plan investments 5 years straight-line recognition All other amounts Straight-line recognition over the expected average remaining service lifetime (EARSL) of all members that are provided with benefits, determined as of the beginning of the Measurement Period. In determining the EARSL, all active, retired and inactive (vested) members are counted, with the latter two groups having 0 remaining service years. N. Employee Compensated Absences It is the government’s policy to permit employees to accumulate earned but unused vacation and sick leave (compensated absences). Vacation pay and sick leave, which are expected to be liquidated with expendable available resources, are reported as expenditure and liability of the governmental fund that will pay it only if they have matured, for example, as a result of employee resignations or retirements. O. Pensions For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the District’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. GASB Statement No. 68 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used. Valuation Date June 30, 2021 Measurement Date June 30, 2022 Measurement Period July 1, 2021 to June 30, 2022 P. Other Post-Employment Benefits (OPEB) For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and the OPEB expense have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used: Valuation Date June 30, 2021 Measurement Date June 30, 2022 Measurement Period June 30, 2021 to June 30, 2022 44 Page 253 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Q.Fund Balance The fund balances reported on the fund statements now consist of the following categories: Nonspendable - This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Restricted - This classification includes amounts that can be spent only for specific purposes stipulated by constitution, external resource providers or through enabling legislation. Committed - This classification includes amounts that can be used only for the specific purposes determined by a formal action of the City Council. The City considers the adoption of a resolution to institute a formal action of City Council for the purpose of establishing, modifying or rescinding committed fund balances. Assigned - This classification includes amounts to be used by the government for specific purposes but do not meet the criteria to be classified as restricted or committed. This includes amounts that are assigned through adoption of a resolution by City Council. The Council may delegate the ability of an employee or committee to assign uses of specific funds, for specific purposes. Such delegation of authority occurred on September 27th, 2018 and will be in effect for future fiscal years. Unassigned - This classification includes the residual balance for the government’s general fund and includes all spendable amounts not contained in other classifications. In other funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed or assigned. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balances are available, the City’s policy is to apply restricted fund balance first. When an expenditure is incurred for purposes for which committed, assigned or unassigned fund balances are available, the City’s policy is to apply committed fund balance first, then assigned fund balance, and finally unassigned fund balance. R.Net Position For government-wide reporting as well as in proprietary funds, the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources is called net position. Net position is comprised of three components: net investment in capital assets, restricted, and unrestricted. Net investment in capital assets consists of capital assets, net of accumulated depreciation/amortization and reduced by outstanding balances of bonds, notes, and other debt that are attributable to the acquisition, construction, or improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt are included in this component of net position. Restricted net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Assets are reported as restricted when constraints are placed on asset use either by external parties or by law through constitutional provision or enabling legislation. Unrestricted net position is the net amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that does not meet the definition of the two preceding categories. Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted net position to have been depleted before unrestricted net position is applied. 45 Page 254 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) S.Restricted Assets Certain proceeds of debt issues, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because they are maintained in separate trustee bank accounts and their use is limited to applicable bond covenants. In addition, funds have been restricted for future capital improvements by City resolution. T. Deficit Fund Equity At June 30, 2023, the City reported deficit fund balances/net position in the following funds: Primary Government The deficit in the Compensation Benefits Fund will be eliminated in future years through contributions from other funds. Component Unit The deficit in the Palm Desert Recreational Facilities Corporation will be eliminated with future revenues through banquet and dining reservations. Fiduciary Funds The deficit in the Successor Agency to the Palm Desert Redevelopment Agency Private-Purpose Trust Fund will be eliminated through future property taxes collected by the County under the direction of the State. The State of California is the responsible body for the elimination of this deficit. U.Use of Estimates The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America and, accordingly, include amounts that are based on management’s best estimates and judgments. The financial statements include estimates for the value of the capital assets (infrastructure), depreciation expense, the fair value of investments, the amounts reported for the net pension liability and related items (Note 11), the amounts reported for the net pension liability, net OPEB liability/(asset) and related items (Note 15), and claims payable (Note 9). Accordingly, actual results could differ from the estimates. V.New GASB Pronouncements Effective During Fiscal Year The following Government Accounting Standards Board (GASB) pronouncements were effective for and/or early implemented for the fiscal year ended June 30, 2023: Fund Name Fund Type Deficit Compensation Benefits Internal Service Fund (272,399)$ Fund Name Fund Type Deficit Palm Desert Recreational Facilities Corporation Component Unit (1,063,311)$ Fund Name Fund Type Deficit Successor Agency to the Palm Desert Redevelopment Agency Private-Purpose Trust Fund (109,623,323)$ 46 Page 255 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) GASB Statement No. 91, Conduit Debt Obligations The requirements of this Statement will improve financial reporting by eliminating the existing option for issuers to report conduit debt obligations as their own liabilities, thereby ending significant diversity in practice. The clarified definition will resolve stakeholders’ uncertainty as to whether a given financing is, in fact, a conduit debt obligation. Requiring issuers to recognize liabilities associated with additional commitments extended by issuers and to recognize assets and deferred inflows of resources related to certain arrangements associated with conduit debt obligations also will eliminate diversity, thereby improving comparability in reporting by issuers. Revised disclosure requirements will provide financial statement users with better information regarding the commitments issuers extend and the likelihood that they will fulfill those commitments. That information will inform users of the potential impact of such commitments on the financial resources of issuers and help users assess issuers’ roles in conduit debt obligations. GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements The requirements of this Statement will improve financial reporting by establishing the definitions of PPPs and APAs and providing uniform guidance on accounting and financial reporting for transactions that meet those definitions. That uniform guidance will provide more relevant and reliable information for financial statement users and create greater consistency in practice. This Statement will enhance the decision usefulness of a government’s financial statements by requiring governments to report assets and liabilities related to PPPs consistently and disclose important information about PPP transactions. The required disclosures will allow users to understand the scale and important aspects of a government’s PPPs and evaluate a government’s future obligations and assets resulting from PPPs. GASB Statement No. 96, Subscription-Based Information Technology Arrangements The requirements of this Statement will improve financial reporting by establishing a definition for SBITAs and providing uniform guidance for accounting and financial reporting for transactions that meet that definition. That definition and uniform guidance will result in greater consistency in practice. Establishing the capitalization criteria for implementation costs also will reduce diversity and improve comparability in financial reporting by governments. This Statement also will enhance the relevance and reliability of a government’s financial statements by requiring a government to report a subscription asset and subscription liability for a SBITA and to disclose essential information about the arrangement. The disclosures will allow users to understand the scale and important aspects of a government’s SBITA activities and evaluate a government’s obligations and assets resulting from SBITAs. GASB Statement No. 100, Accounting Changes and Error Corrections The requirements of this Statement will improve the clarity of the accounting and financial reporting requirements for accounting changes and error corrections, which will result in greater consistency in application in practice. In turn, more understandable, reliable, relevant, consistent, and comparable information will be provided to financial statement users for making decisions or assessing accountability. In addition, the display and note disclosure requirements will result in more consistent, decision useful, understandable, and comprehensive information for users about accounting changes and error corrections. 47 Page 256 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 2: CASH AND INVESTMENTS As of June 30, 2023, cash and investments were reported in the accompanying financial statements as follows: Cash and investments at June 30, 2023, consisted of the following: The City of Palm Desert maintains a cash and investment pool that is available for use for all funds. Each fund type’s position in the pool is reported on the combined balance sheet as cash and investments. The City has adopted an investment policy, which authorizes it to invest in various investments. A. Deposits At June 30, 2023, the carrying amount of the deposits was $59,044,877, and the bank balance was $59,647,216. The $602,339 difference represents outstanding checks, deposits in transit and other reconciling items. The California Government Code requires California banks and savings and loan associations to secure an Entity’s deposits by pledging government securities with a value of 110% of an Entity’s deposits. California law also allows financial institutions to secure deposits by pledging first trust deed mortgage notes having a value of 150% of total deposits. The City Treasurer may waive the collateral requirement for deposits that are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal and state-chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an Agent of Depository. These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an Agent of Depository has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local governmental agency. Governmental activities 363,960,746$ Business-type activities 14,100,518 Component unit 1,216,690 Fiduciary funds 52,637,045 431,914,999$ Total cash and investments Primary Government Demand accounts 20,721,619$ Petty cash 22,550 Investments 357,317,095 Total cash and investments - Primary Government 378,061,264$ Component Unit Demand accounts 1,216,690$ Fiduciary Funds Demand accounts 37,106,568$ Pooled with primary government 32,906 Investments 15,497,571 Total cash and investments - Fiduciary Funds 52,637,045$ 48 Page 257 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 2: CASH AND INVESTMENTS (CONTINUED) B. Investments Investments Authorized by the California Government Code and the City’s Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code and the City’s investment policy. The table also identifies certain provisions of the California Government Code (or the City’s investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy. GASB Statement No. 31 The City adopted GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, as of July 1, 1997. GASB Statement No. 31 establishes fair value standards for investments in participating interest earning investment contracts, external investment pools, equity securities, option contracts, stock warrants and stock rights that have readily determinable fair values. The City Treasurer is authorized under state and municipal law to invest in various types of securities that meet specified credit quality standards, based upon credit risk ratings assigned by Standard and Poors (S&P), Fitch, or by Moody’s Investor Services (Moody’s). Permissible City investments include medium-term notes that are rated “A” or higher at time of purchase; commercial paper that is rated “A-1” or the equivalent; money market mutual funds that are rated “AAA”; and United States Government and Federal Agency securities (the quality of United States Treasury securities is not analyzed since they are not deemed to have credit risk). Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required, when applicable, by the California Government Code, the City’s investment policy, or debt agreements, and the rating by Standard and Poor’s, Fitch and Moody’s as of year-end for each investment type. Authorized by Maximum Maximum Investment Types Investment Maximum Percentage Investment Authorized by State Law Policy Maturity * of Portfolio * in One Issuer * United States Treasury Bills, Notes, Bonds Yes 5 years 100%none United States Government-Sponsored Agency Securities Yes 5 years 100%30% California State and Local Agency Debt Yes 180 days 25%none Commercial Paper Yes 270 days 25%10% Negotiable Certificates of Deposit Yes 5 years 5%none Time Certificates of Deposit Yes 5 years 5%none Repurchase Agreements Yes 1 year 10%none Medium-Term Corporate Notes Yes 5 years 25%10% Money Market Mutual Funds Yes 5 years 20%none Local Agency Investment Fund (LAIF)Yes N/A $75M/Acct none Structured Notes (STRIPS)Yes 5 years 20%none Local Government Investment Pools Yes N/A 75%none * Based on state law requirements or City investment policy requirements, whichever is more restrictive. 49 Page 258 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 2: CASH AND INVESTMENTS (CONTINUED) Primary Government The ratings for the “Other” category above are as follows: Fiduciary Funds Custodial Credit Risk The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for the investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. As of June 30, 2023, none of the City’s deposits or investments were exposed to custodial credit risk. Concentration of Credit Risk The City’s investment policy imposes restrictions on the percentage the City can invest in certain types of investments, which the City is in compliance. As of June 30, 2023, in accordance with GASB Statement No. 40, if the City has invested more than 10% of its total investments in any one issuer then they are exposed to concentration of credit risk. The City is not invested in any one issuer that is more than 10% of its total investments. Interest Rate Risk The City’s investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City’s investment policy states that the City shall not invest in securities with maturities exceeding five years. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk. Minimum Exempt or Investment Type Total Legal Rating Aaa AAA Other Not Rated California Local Agency Investment Fund 21,483,702$ N/A -$ -$ -$ 21,483,702$ California Asset Management Program 205,329,656 N/A - 205,329,656 - - Riverside County Treasurer's Pooled Investment Fund 2,449,520 N/A 2,449,520 - - - U.S. Government Sponsored Agency Securities 35,532,809 N/A 35,532,809 - - - Medium-Term Corporate Notes 24,147,750 N/A - - 24,147,750 - Held by Fiscal Agent: Money Market Deposit Account 68,373,658 N/A - - - 68,373,658 Total 357,317,095$ 37,982,329$ 205,329,656$ 24,147,750$ 89,857,360$ Investment Type A1 A2 Total Medium-Term Corporate Notes 16,305,700$ 7,842,050$ 24,147,750$ Minimum Exempt or Investment Type Total Legal Rating Aaa AAA Not Rated California Local Agency Investment Fund 762$ N/A -$ -$ 762$ California Asset Management Program 5,973 N/A - 5,973 - Riverside County Treasurer's Pooled Investment Fund 341 N/A 341 - - Investment in City Bonds 126,000 N/A - - 126,000 Held by Fiscal Agent: Money Market Deposit Account 15,364,495 N/A - - 15,364,495 Total 15,497,571$ 341$ 5,973$ 15,491,257$ 50 Page 259 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 2: CASH AND INVESTMENTS (CONTINUED) As of June 30, 2023, the City had the following investments and maturities: Primary Government Fiduciary Funds Investment in State Investment Pool The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Investment in California Asset Management Program The California Asset Management Program (CAMP) is a public joint powers authority which provides California Public Agencies with investment management services for surplus funds and comprehensive investment management, accounting and arbitrage rebate calculation services for proceeds of tax-exempt financings. The CAMP currently offers the Cash Reserve Portfolio, a short-term investment portfolio, as a means for Public Agencies to invest these funds. Public Agencies that invest in the Pool (Participants) purchase shares of beneficial interest. Participants may also establish individual, professionally managed investment accounts (Individual Portfolios) by separate agreement with the Investment Advisor. Investments in the Pools and Individual Portfolios are made only in investments in which Public Agencies generally are permitted by California statute. The CAMP may reject any investment and may limit the size of a Participant’s account. The Pool seeks to maintain, but does not guarantee, a constant net asset value of $1.00 per share. A Participant may withdraw funds from its Pool accounts at any time by check or wire transfers. Requests Less Than 6 Months - 1 Year - Over Investment Type Total 6 Months 1 Year 3 Years 3 Years California Local Agency Investment Fund 21,483,702$ 21,483,702$ -$ -$ -$ California Asset Management Program 205,329,656 205,329,656 - - - Riverside County Treasurer's Pooled Investment Fund 2,449,520 2,449,520 - - - U.S. Government Sponsored Agency Securities 35,532,809 20,266,899 - 15,265,910 - Medium-Term Corporate Notes 24,147,750 - 19,177,300 - 4,970,450 Held by Fiscal Agent: Money Market Deposit Account 68,373,658 68,373,658 - - - Total 357,317,095$ 317,903,435$ 19,177,300$ 15,265,910$ 4,970,450$ Less Than 6 Months - 1 Year - Over Investment Type Total 6 Months 1 Year 3 Years 3 Years California Local Agency Investment Fund 762$ 762$ -$ -$ -$ California Asset Management Program 5,973 5,973 - - - Riverside County Treasurer's Pooled Investment Fund 341 341 - - - Investment in City Bonds 126,000 67,000 - 59,000 - Held by Fiscal Agent: Money Market Deposit Account 15,364,495 15,364,495 - - - Total 15,497,571$ 15,438,571$ -$ 59,000$ -$ 51 Page 260 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 2: CASH AND INVESTMENTS (CONTINUED) for same-day wire transfers must be made by 11:00 a.m. that day. Fair value of the Pool is determined by the fair value per share of the Pool’s underlying portfolio. Investment in Riverside County Treasurer’s Pooled Investment Fund The City is a voluntary participant in the Riverside County Treasurer’s Pooled Investment Fund (Pooled Fund). The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value that the Riverside County Treasurer’s Office has provided for the entire Pooled Fund (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based upon the accounting records that the Riverside County Treasurer’s Office maintains, which are recorded on an amortized cost basis. Fair Value Measurements The City categorizes its fair value measurement within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the relative inputs used to measure the fair value of the investments. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described as follows: Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets in active markets that the City has the ability to access. Level 2: Inputs to the valuation methodology include: Quoted prices for similar assets in active markets; Quoted prices for identical or similar assets in inactive markets; Inputs other than quoted prices that are observable for the asset; Inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs reflect the City’s own assumptions about the inputs market participants would use in pricing the asset (including assumptions about risk). Unobservable inputs are developed based on the best information available in the circumstances and may include the City’s own data. The asset’s level within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The determination of what constitutes observable requires judgment by the City’s management. City management considers observable data to be that market data which is readily available, regularly distributed or updated, reliable, and verifiable, not proprietary, and provided by multiple independent sources that are actively involved in the relevant market. The categorization of an investment within the hierarchy is based upon the relative observability of the inputs to its fair value measurement and does not necessarily correspond to City management’s perceived risk of that investment. The methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. The use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. 52 Page 261 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 2: CASH AND INVESTMENTS (CONTINUED) When available, quoted prices are used to determine fair value. When quoted prices in active markets are available, investments are classified within Level 1 of the fair value hierarchy. When quoted prices in active markets are not available, fair values are based on evaluated prices received by City’s asset manager from third party service provider. The following is a description of the recurring valuation methods and assumptions used by the City to estimate the fair value of its investments. For a large portion of the City’s portfolio, the City’s custodian applies their leveling methodology across all securities in a specific sector (i.e. U.S. Government Sponsored Agency Securities). Inputs to their pricing models are based on observable market inputs in active markets. The Successor Agency Former RDA’s investment in City bonds is not tradable and is categorized in Level 3. When valuing Level 3 securities, the inputs or methodology are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. Primary Government Fiduciary Funds NOTE 3: NOTES AND LOANS RECEIVABLE A.Notes Receivable On August 8, 2006, the City of Palm Desert issued $3,165,000 of Limited Obligation Bonds. The proceeds of the Bonds were used to finance the construction of the utility undergrounding and pay the cost of issuance. The debt Investment Type Total Level 1 Level 2 Level 3 Uncategorized California Local Agency Investment Fund 21,483,702$ -$ -$ -$ 21,483,702$ California Asset Management Program 205,329,656 - - - 205,329,656 Riverside County Treasurer's Pooled Investment Fund 2,449,520 - - - 2,449,520 U.S. Government Sponsored Agency Securities 35,532,809 - 35,532,809$ - - Medium-Term Corporate Notes 24,147,750 - 24,147,750 - - Held by Fiscal Agent: Money Market Deposit Account 68,373,658 - - - 68,373,658 Total 357,317,095$ -$ 59,680,559$ -$ 297,636,536$ Input Category Investment Type Total Level 1 Level 2 Level 3 Uncategorized California Local Agency Investment Fund 762$ -$ -$ -$ 762$ California Asset Management Program 5,973 - - - 5,973 Riverside County Treasurer's Pooled Investment Fund 341 - - - 341 Investment in City Bonds 126,000 - - 126,000 - Held by Fiscal Agent: Money Market Deposit Account 15,364,495 - - - 15,364,495 Total 15,497,571$ -$ -$ 126,000$ 15,371,571$ Input Category 53 Page 262 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 3: NOTES AND LOANS RECEIVABLE (CONTINUED) service on the bonds is to be paid by assessments secured on the property tax rolls of those properties benefiting from the improvements. Bond maturities began September 2, 2007, and continue annually through 2036. The interest rates of the bonds range from 3.85% to 5.15%. The City of Palm Desert is the only bondholder on record for the bonds and reports a receivable in the general fund that corresponds to the outstanding principal on the bonds. As of June 30, 2023, the receivable balance was $1,032,000. B. Loans Receivable The City entered into several individual loan agreements with residents of the Highlands Utility Undergrounding Assessment District No. 04-01. The loans were issued by the City to pay off the principal of the respective properties assessment. In turn, the residents agreed to pay to the City the full cost of the loan amount plus any accrued interest at a rate of 5.35%. The full amount of the loan along with all accrued interest is due and payable at the earliest of September 2, 2036 or any change in ownership of the property. As of June 30, 2023, the total receivable from the Highlands Deferral Loan Program was $14,978. Pursuant to Health and Safety Code 34176(b), the housing assets of the former RDA have been transferred to the Housing Asset Fund as the successor housing entity. The Housing Asset Fund has a loan receivable for the construction of a multi-family affordable housing development dated June 14, 2001 due from the PD Hovley Limited Partnership. The loan is secured by a Deed of Trust and Regulatory Agreement with Options on the housing development located in Palm Desert. On April 8, 2021 the Authority Board approved the re-syndication, refinancing and rehabilitation of the affordable housing development. The existing 2001 loan was modified to extend its maturity for fifty-five (55) years and provides for a suspension of principal payments for the estimated construction period. The Authority Loan shall bear interest at the greater of the current applicable federal rate as of the date of the Promissory Note or one percent (1%) simple interest per annum, and will be repaid from seventy-five percent (75%) of the developments residual receipts remaining after payment of fees and expenses. As of June 30, 2023, the total receivable from PD Hovley Limited Partnership was $5,148,813. The Housing Asset Fund has a loan receivable for the construction of a multi-family affordable housing development dated December 20, 2022, due from Palm Desert Pacific Associates, a California Limited Partnership. The Authority Loan shall bear interest at three percent (3%) simple interest per annum, and repayment will commence as follows: 50% of Project Net Cash Flow, as defined in the Loan Agreement shall be paid to PDHA on an annual basis on June 30th after the first anniversary of issuance of a final certificate of occupancy for the project and each annual anniversary thereafter (with respect to the Project New Cash Flow for the preceding year ending on June 30th prior to each such payment date) until the Note has been satisfied in full. As of June 30, 2023, the total receivable from Palm Desert Pacific Associates was $6,030,000 and management has no reason to believe any allowance for doubtful accounts should be established for the loan. On August 28, 2008, the City Council approved through resolution the Energy Independence Program (EIP), which is supported by Assembly Bill AB811. The EIP program allowed the City to create the funding mechanism to assist the residents and businesses entering into a loan agreement with the City and providing the money for the borrowers to acquire and install energy efficient improvements. Assembly Bill AB811 allows the City to lien the properties through annual property tax assessments for a period not to exceed 20 years. To date, 279 residents and business owners entered into loan agreements with the City and have completed their improvements through the EIP program, as of June 30, 2023, 160 loans have been repaid. The loans are payable in two annual installments for a period of 5 years to 20 years at an interest rate of 7% annually. On June 30, 2023, the outstanding loans receivable through the EIP Program was $1,221,675. Pursuant to Health and Safety Code 34176(b), the housing assets of the former RDA have been transferred to the Palm Desert Housing Authority as the successor housing entity. The Housing Authority has loans for several other projects, all of which are secured by a deed of trust. An allowance for doubtful accounts equal to the loan balance has been recognized since there is a significant possibility that these loans will either become uncollectible or forgiven by the Housing Authority at a future date if all the terms of the loans have been met. 54 Page 263 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 3: NOTES AND LOANS RECEIVABLE (CONTINUED) Detailed information for these loans is as follows: NOTE 4: INTERFUND RECEIVABLES, PAYABLE, ADVANCES AND TRANSFERS The composition of interfund balances as of June 30, 2023, was as follows: A. Due To/From Other Funds The amounts loaned from the General Fund to non-major governmental funds and capital properties were to cover cash shortfall at year end as of June 30, 2023. B. Advances To/From Other Funds The General Fund advanced $956,000 to the Energy Independence Special Revenue Fund to payoff the bonds used to fund energy efficiency, and loaned $1,000,000 to Desert Willow Golf Course to fund the daily operations, including the daily operations of the restaurant. The advance to the Energy Independence Special Revenue Fund is repaid as the Energy Independence Program (EIP) loans are repaid. See Note 3 for more information on these loans. The Capital Golf fund advanced $3,627,329 to the Desert Willow Golf Course for the purchases of golf carts totaling $2,051,890 and golf course equipment totaling $1,575,439. The advance for the golf carts will be repaid over 48 months beginning January 1, 2023 and bears interest at a rate of 2.5%. The advance for the golf course equipment will be repaid over 60 months beginning November 1, 2022 and bears interest at a rate of 2.5%. Accrued Total Principal Unpaid Outstanding Balance Interest as of Interest Maturity Project Name Outstanding Outstanding June 30, 2023 Rate Date Notes Home Improvement Loans 324,466 - 324,466 N/A N/A (1),(2) Portola Palms Mobile Home Park 94,930 2,848 97,778 3.00% 30 years (3) Desert Rose 2,319,754 69,593 2,389,347 3.00% 30-45 years* (1),(3) Falcon Crest 3,023,876 90,716 3,114,592 3.00% 30-45 years* (1),(2) Acquisition, Rehabilitation, Resale 190,510 5,715 196,225 3.00% 30-45 years (2) Habitat for Humanity 327,000 23,708 350,708 7.25% 30 years or 2024 (2) 6,280,536$ 192,580$ 6,473,116 Less: Allowance for Doubtful Accounts (6,473,116) Balance at June 30, 2023 -$ Receivable Fund Payable Fund Amount General Fund Other Governmental Funds 1,136,962$ Receivable Fund Payable Fund Amount General Fund Other Governmental Funds 956,000$ Desert Willow Golf Course 1,000,000 Other Governmental Funds Desert Willow Golf Course 3,179,888 5,135,888$ 55 Page 264 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 4: INTERFUND RECEIVABLES, PAYABLE, ADVANCES AND TRANSFERS (CONTINUED) The future payment schedule for these advances are as follows: C. Due To/From Component Unit The Palm Desert Recreational Facilities Corporation (the Corporation) owes the General Fund $420,000 in deferred unpaid rent for various years through FY 2020-2021 associated with the lease between the City and the Corporation. The Corporation owes the Desert Willow Golf Course Fund $1,578,564 which represents subsidies for operation, $1,195,524 of which relates to prior fiscal years and $383,040 which relates to the current year. There is no payment schedule in place for the repayment of these amounts, therefore these transactions have been recorded as long-term in the accompanying financial statements. D. Interfund Transfers The composition of interfund transfers as of June 30, 2023, was as follows: Transfers are used to: 1. Transfer revenues to provide for capital projects. 2. Transfer revenues to provide for additional resources to pay for expenditures. 3. Transfer to cover future cost of assets. Fiscal Year Principal Payments Interest Payments Total Payments 2024 780,687$ 70,592$ 851,279$ 2025 800,428 50,849 851,277 2026 820,670 30,608 851,278 2027 633,196 10,937 644,133 2028 144,907 756 145,663 Total 3,179,888$ 163,742$ 3,343,630$ Advance to Other Governmental Fund Receivable Fund Payable Fund Amount General Fund Palm Desert Recreational Facilities Corporation 420,000$ Desert Willow Golf Course Palm Desert Recreational Facilities Corporation 1,578,564 1,998,564$ Transfers Out General Fund Prop A Fire Tax Special Revenue Fund Capital Properties Capital Projects Fund Other Governmental Funds Internal Service Fund Totals General Fund -$ 4,600,000$ 1,800,000$ 17,451,752$ 961,289$ 24,813,041$ Housing Authority Special Revenue Fund - - - 415,990 - 415,990 Other Governmental Funds 2,478,731 - - - - 2,478,731 Totals 2,478,731$ 4,600,000$ 1,800,000$ 17,867,742$ 961,289$ 27,707,762$ Transfers In 56 Page 265 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 5: CAPITAL ASSETS A summary of changes in capital assets at June 30, 2023, was as follows: A. Primary Government – Governmental Activities Depreciation/amortization expense was charged to functions/programs as follows: Balance Balance July 1, 2022 Transfers Additions Deletions June 30, 2023 Governmental activities: Capital assets, not being depreciated/amortized Land 82,066,168$ -$ 220,921$ -$ 82,287,089$ Right-of-way 121,210,045 - 50,000 - 121,260,045 Construction-in-progress 18,450,547 (6,087,441) 1,389,462 (3,572,868) 10,179,700 Total capital assets, not being depreciated/amortized 221,726,760 (6,087,441) 1,660,383 (3,572,868) 213,726,834 Capital assets, being depreciated/amortized Buildings 144,293,925 - 6,846,930 - 151,140,855 Improvements other than buildings 60,724,608 158,113 2,779,842 - 63,662,563 Machinery, equipment, and vehicles 11,277,689 - 276,110 (107,074) 11,446,725 Infrastructure 247,521,105 5,844,499 1,044,052 - 254,409,656 Lease assets 2,603,284 - - - 2,603,284 Subscription assets - - 543,846 - 543,846 Equipment - Internal service fund 9,205,887 84,829 90,621 (500,987) 8,880,350 Total capital assets, being depreciated/amortized 475,626,498 6,087,441 11,581,401 (608,061) 492,687,279 Less accumulated depreciation/amortization Buildings (78,047,903) - (3,573,698) - (81,621,601) Improvements other than buildings (48,675,399) - (1,928,401) - (50,603,800) Machinery and equipment (10,124,102) - (499,151) 107,073 (10,516,180) Infrastructure (129,439,376) - (5,095,482) - (134,534,858) Lease assets (233,919) - (234,737) - (468,656) Subscription assets - - (128,714) - (128,714) Equipment - Internal service fund (6,024,978) - (751,260) 493,525 (6,282,713) Total accumulated depreciation/amortization (272,545,677) - (12,211,443) 600,598 (284,156,522) Total capital assets, being depreciated/amortized, net 203,080,821 6,087,441 (630,042) (7,463) 208,530,757 Total Governmental Activities Capital Assets 424,807,581$ -$ 1,030,341$ (3,580,331)$ 422,257,591$ Governmental Activities: General government 2,095,474$ Housing and redevelopment 1,600,448 Public safety 93,486 Public works 6,266,926 Parks, recreation and culture 1,403,849 Internal Service Funds 751,260 Total Depreciation/Amortization Expense - Governmental Activities 12,211,443$ 57 Page 266 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 5: CAPITAL ASSETS (CONTINUED) B. Primary Government – Business-Type Activities Depreciation/amortization expense was charged to functions/programs as follows: C. Component Unit Balance Balance July 1, 2022 Additions Deletions June 30, 2023 Business-type activities: Capital assets, not being depreciated/amortized Land 53,304,965$ -$ -$ 53,304,965$ Total capital assets, not being depreciated/amortized 53,304,965 - - 53,304,965 Capital assets, being depreciated/amortized Buildings and improvements 28,576,279 25,614 - 28,601,893 Machinery and equipment 6,968,012 3,558,032 (2,138,233) 8,387,811 Total capital assets, being depreciated/amortized 35,544,291 3,583,646 (2,138,233) 36,989,704 Less accumulated depreciation/amortization Buildings and improvements (15,231,748) (855,268) - (16,087,016) Machinery and equipment (6,102,271) (684,883) 2,138,233 (4,648,921) Total accumulated depreciation/amortization (21,334,019) (1,540,151) 2,138,233 (20,735,937) Total capital assets, being depreciated/amortized, net 14,210,272 2,043,495 - 16,253,767 Total business-type activities capital assets 67,515,237$ 2,043,495$ -$ 69,558,732$ Business-Type Activities: Parkview Office Complex 315,176$ Desert Willow Golf Course 1,224,975 Total depreciation/amortization expense - business-type activit ies 1,540,151$ Balance Balance July 1, 2022 Adjustments Additions Deletions June 30, 2023 Component Unit: Capital assets, being amortized Lease asset -$ 2,636,688$ -$ -$ 2,636,688$ Total capital assets, being amortized - 2,636,688 - - 2,636,688 Less accumulated amortization Lease asset - (71,262) (71,262) - (142,524) Total accumulated amortization - (71,262) (71,262) - (142,524) Total capital assets, being amortized, net - 2,565,426 (71,262) - 2,494,164 Total component unit capital assets -$ 2,565,426$ (71,262)$ -$ 2,494,164$ 58 Page 267 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 6: LONG-TERM DEBT The following is a summary of long-term liability transactions of the City for the year ended June 30, 2023. A. Primary Government – Governmental Activities Debt service payments for the special assessment debt with government commitment, tax allocation bonds and notes payable are made from debt service funds and a special revenue fund. Special Assessment Debt with Government Commitment Highlands Undergrounding Assessment District No. 04-01, Limited Obligation Improvement Bonds, Series 2006 On August 8, 2006, the City Palm Desert issued $3,165,000 of Limited Obligation Bonds. The proceeds of the Bonds were used to finance the construction of the utility undergrounding and pay the cost of issuance. The debt service on the bonds is to be paid by assessments secured on the property tax rolls of those properties benefiting from the improvements. In the event that assessment collections are insufficient to pay the debt service, the City has a potential obligation to provide additional funds to pay the debt service, therefore these bonds are reported as special assessment debt with government commitment. Bond maturities begin September 2, 2007, and continue annually through 2036. The interest rates of the bonds range from 3.85% to 5.15%. The City of Palm Desert is the only bondholder on record of the bonds and the City does not own the constructed assets. The future debt service requirements on the Highlands Undergrounding Assessment District No. 04-01, Limited Obligation Improvement Bonds, Series 2006 are as follows: Limited Obligation Bonds Limited Obligation Improvement Bonds Series 2009A (Taxable) On January 29, 2009, the City issued $2,015,000 Limited Obligation Improvement Bonds Series 2009A (Taxable). The proceeds of the Bonds were used to fund the City’s Energy Independence Program. Concurrent with the issuance of the Bonds, the City entered into a bond purchase agreement with the Agency whereby the Agency agreed to purchase the Bonds equal to par value. The bonds bear interest at 3% payable semiannually on September 2 and March 2. Bond maturities commenced September 2, 2010, and continue annually through September 2, 2029. Balance June 30, 2022 Additions Reductions Bond Calls Balance June 30, 2023 Due Within One Year Direct Borrowing: Special assessment debt 1,082,000$ -$ (50,000)$ -$ 1,032,000$ 52,000$ with government commitment Limited obligation improvement bonds 212,000 - (27,000) (59,000) 126,000 22,000 Total 1,294,000$ -$ (77,000)$ (59,000)$ 1,158,000$ 74,000$ Year Ending June 30, Principal Interest Total 2024 52,000$ 51,709$ 103,709 2025 55,000 48,981 103,981 2026 58,000 46,099 104,099 2027 61,000 43,065 104,065 2028 64,000 39,861 103,861 2029-2033 371,000 145,256 516,256 2034-2038 371,000 39,423 410,423 Total 1,032,000$ 414,394$ 1,446,394$ 59 Page 268 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 6: LONG-TERM DEBT (CONTINUED) The future debt service requirements on the Limited Obligation Improvement Bonds Series 2009A (Taxable) are as follows: Limited Obligation Improvement Bonds Series 2009B (Taxable) On September 2, 2009, the City issued $1,136,000 Limited Obligation Improvement Bonds Series 2009B (Taxable). The proceeds of the Bonds were used to fund the City’s Energy Independence Program. Concurrent with the issuance of the Bonds, the City entered into a bond purchase agreement with the Agency whereby the Agency agreed to purchase the Bonds equal to par value. The bonds bear interest at 3% payable semiannually on September 2 and March 2. Bond maturities commenced September 2, 2010, and continue annually through September 2, 2029. The future debt service requirements on the Limited Obligation Improvement Bonds Series 2009B (Taxable) are as follows: B. Primary Government – Business-Type Activities The City entered into a 48-month agreement for the purchase of golf cart fleet equipment with Club Car National on June 12, 2018. Payments are $12,330 monthly commencing on February 1, 2019 and includes interest at 5.75%. The amount was paid in full as of June 30, 2023. Year Ending June 30, Principal Interest Total 2024 12,000$ 1,950$ 13,950$ 2025 11,000 1,605 12,605 2026 9,000 1,305 10,305 2027 9,000 1,035 10,035 2028 10,000 750 10,750 2029-2033 19,000 600 19,600 Total 70,000$ 7,245$ 77,245$ Year Ending June 30, Principal Interest Total 2024 10,000$ 1,620$ 11,620$ 2025 10,000 1,320 11,320 2026 7,000 1,065 8,065 2027 8,000 840 8,840 2028 8,000 600 8,600 2029-2033 13,000 480 13,480 Total 56,000$ 5,925$ 61,925$ Amount Balance Balance Due Within July 1, 2022 Additions Deletions June 30, 2023 One Year Club Car National Account 75,743$ -$ 75,743$ -$ -$ GPSI Leasing, LLC 36,826 - 36,826 - - PNC Equipment Finance LLC 74,859 - 74,859 - - GPSI Leasing, LLC - 354,462 35,293 319,169 86,217 Totals 187,428$ 354,462$ 222,721$ 319,169$ 86,217$ 60 Page 269 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 6: LONG-TERM DEBT (CONTINUED) The City entered into a 48-month agreement for the purchase of golf cart fleet equipment with GPSI Leasing, LLC. The agreement was amended on December 27, 2018 to extend the payment terms an additional 48 months and lower the payment to $5,792 beginning on November 1, 2018, including interest at 5.75%. The amount was paid in full as of June 30, 2023. The City entered into a 60-month agreement for the purchase of Toro golf course equipment with PNC Equipment Finance, LLC. Payments are $25,078 monthly commencing on October 1, 2017 and includes interest at 2.95%. The amount was paid in full as of June 30, 2023. The City entered into a financed purchase agreement with GPSI Leasing, LLC for the purchase of golf carts. The financed purchase bears interest at a rate of 5.75%. On December 20, 2022 the finance purchase agreement was amended to extend additional the term for an 48 months resulting in a revised annual payment of $93,213 beginning February 1, 2023. The future debt service requirements on the financed purchases are as follows: NOTE 7: COMPENSATED ABSENCES The City's policy relating to compensated absences is described in Note 1 of the Notes to Financial Statements. The City historically allocates costs to liquidate liabilities for compensated absences and pension liability based on the allocation of the employees earning the respective benefits and their respective payroll expense to various fund across the City. This liability will be paid in future years from future resources in the internal service fund. The outstanding liability for compensated absences accrued was $2,601,028. NOTE 8: LEASES A. Leases Receivable and Deferred Inflows of Resources Primary Government – Governmental Activities On July 1, 2021, the City entered into a 262-month lease as lessor for the Crown Castle Cell Tower - Cook St @ Desert Willow. An initial lease receivable was recorded in the amount of $42,517. As of June 30, 2023, the value of the lease receivable is $24,343. The lessee is required to make annual fixed payments of $19,243. The lease has an interest rate of 1.5830%. The value of the deferred inflow of resources as of June 30, 2023 was $38,623, and the City recognized lease revenue of $1,947 during the fiscal year. The lessee has 2 extension options, each for 120 months. Year Ending June 30, Principal Interest Total 2024 86,217$ 6,996$ 93,213$ 2025 88,397 4,816 93,213 2026 90,632 2,580 93,212 2027 53,923 450 54,373 Total 319,169$ 14,842$ 334,011$ Balance Balance Due Within June 30, 2022 Additions Deletions June 30, 2023 One Year 2,289,338$ 425,084$ 113,394$ 2,601,028$ 500,000$ 61 Page 270 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 8: LEASES (CONTINUED) On July 1, 2021, the City entered into a 60-month lease as lessor for the use of Soccer Park. An initial lease receivable was recorded in the amount of $135,241. As of June 30, 2023, the value of the lease receivable is $81,189. The lessee is required to make annual fixed payments of $27,376. The lease has an interest rate of 0.5770%. The value of the deferred inflow of resources as of June 30, 2023 was $81,680, and the City recognized lease revenue of $26,780 during the fiscal year. On July 1, 2021, the City entered into a 136-month lease as lessor for the use of Civic Center Cell Tower. An initial lease receivable was recorded in the amount of $415,792. As of June 30, 2023, the value of the lease receivable is $356,282. The lessee is required to make monthly fixed payments of $2,838. The lease has an interest rate of 1.2540%. The value of the deferred inflow of resources as of June 30, 2023 was $342,417, and the City recognized lease revenue of $36,688 during the fiscal year. The lessee has 2 extension options, each for 60 months. On July 1, 2021, the City entered into a 66-month lease as lessor for the use of the Vineyards Commercial Center. An initial lease receivable was recorded in the amount of $332,785.96. As of June 30, 2023, the value of the lease receivable is $205,636. The lessee is required to make annual fixed payments of $64,542. The lease has an interest rate of 0.7030%. The value of the deferred inflow of resources as of June 30, 2023 was $211,773, and the City recognized lease revenue of $60,507 during the fiscal year. On July 1, 2021, the City entered into a 444-month lease as lessor for the use of the restaurant at the Desert Willow Golf Course Clubhouse from the Corporation. An initial lease receivable was recorded in the amount of $2,636,688. As of June 30, 2023, the value of the lease receivable is $2,529,043. The Corporation is required to make monthly fixed payments of $8,000. The lease has an interest rate of 1.7050%. The value of the deferred inflow of resources as of June 30, 2023 was $2,494,164, and the City recognized lease revenue of $71,262 during the fiscal year. The principal and interest payments that are expected to maturity are as follows: Primary Government – Business-Type Activities On January 3, 2023, the City entered into a 24-month lease as lessor for the use of Parkview Office Complex, Ste 129.An initial lease receivable was recorded in the amount of $40,498. As of June 30, 2023, the value of the lease receivable is $30,661. The lessee is required to make monthly fixed payments of $1,706. The lease has an interest rate of 2.707%. The value of the deferred inflow of resources as of June 30, 2023 was $30,486, and the City recognized lease revenue of $10,012 during the fiscal year. The lessee has 5 extension options, each for 12 months. Fiscal Year Principal Payments Interest Payments Total Payments 2024 177,671$ 49,293$ 130,964$ 2025 182,375 47,358 133,733 2026 187,203 45,373 133,733 2027 91,761 43,336 133,733 2028 94,353 41,916 133,733 2029 - 2033 510,196 7,387 133,733 2034 - 2038 327,022 152,979 133,733 2039 - 2043 356,101 123,899 133,733 2044 - 2048 387,767 92,233 133,733 2049 - 2053 422,249 57,751 133,733 2054 - 2058 459,795 20,203 133,733 Total 3,196,493$ 681,728$ 1,468,294$ Governmental Activities 62 Page 271 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 8: LEASES (CONTINUED) On May 1, 2023, the City entered into a 60-month lease as lessor for the use of Parkview Office Complex, Ste 126. An initial lease receivable was recorded in the amount of $103,212. As of June 30, 2023, the value of the lease receivable is $99,976. The lessee is required to make monthly fixed payments of $1,716. The lease has an interest rate of 2.31%. The value of the deferred inflow of resources as of June 30, 2023 was $99,772, and the City recognized lease revenue of $3,440 during the fiscal year. The lessee has 5 extension options, each for 12 months. On December 1, 2022, the City entered into a 60-month lease as lessor for the use of Parkview Office Complex, Ste 120. An initial lease receivable was recorded in the amount of $143,073. As of June 30, 2023, the value of the lease receivable is $128,250. The lessee is required to make monthly fixed payments of $2,438. The lease has an interest rate of 3.305%. The value of the deferred inflow of resources as of June 30, 2023 was $126,381, and the City recognized lease revenue of $16,692 during the fiscal year. The lessee has 5 extension options, each for 12 months. On December 1, 2022, the City entered into a 24-month lease as lessor for the use of Parkview Office Complex, Suites 108, 100, 116, and 220. An initial lease receivable was recorded in the amount of $172,400. As of June 30, 2023, the value of the lease receivable is $123,684. The lessee is required to make monthly fixed payments of $7,298. The lease has an interest rate of 3.207%. The value of the deferred inflow of resources as of June 30, 2023 was $122,117, and the City recognized lease revenue of $50,283 during the fiscal year. The lessee has 1 extension options, for 12 months. On December 1, 2022, the City entered into a 24-month lease as lessor for the use of Parkview Office Complex Ste 103. An initial lease receivable was recorded in the amount of $24,118. As of June 30, 2023, the value of the lease receivable is $18,137. The lessee is required to make monthly fixed payments of $903. The lease has an interest rate of 3.2070%. The value of the deferred inflow of resources as of June 30, 2023 was $17,083, and the City recognized lease revenue of $7,034 during the fiscal year. The lessee has 2 extension options, each for 12 months. On July 1, 2021, the City entered into a 48-month lease as lessor for the use of 73-720 Fred Waring Dr. An initial lease receivable was recorded in the amount of $400,629. As of June 30, 2023, the value of the lease receivable is $213,504. The lessee is required to make monthly fixed payments of $8,139. The lease has an interest rate of 0.5770%. The value of the deferred inflow of resources as of June 30, 2023 was $200,315, and the City recognized lease revenue of $100,157 during the fiscal year. On July 1, 2021, the City entered into a 132-month lease as lessor for the use of Parkview Suite 112. An initial lease receivable was recorded in the amount of $223,707. As of June 30, 2023, the value of the lease receivable is $192,177. The lessee is required to make monthly fixed payments of $1,823. The lease has an interest rate of 2.927%. The value of the deferred inflow of resources as of June 30, 2023 was $183,033, and the City recognized lease revenue of $20,337 during the fiscal year. On July 1, 2021, the City entered into a 84-month lease as lessor for the use of Parkview Office Ste 104. An initial lease receivable was recorded in the amount of $261,206. As of June 30, 2023, the value of the lease receivable is $187,993. The lessee is required to make monthly fixed payments of $3,200. The lease has an interest rate of 0.8330%. The value of the deferred inflow of resources as of June 30, 2023 was $186,576, and the City recognized lease revenue of $37,315 during the fiscal year. The lessee has 1 extension options, each for 60 months. On July 1, 2021, the City entered into a 63-month lease as lessor for the use of Parkview Ste 102. An initial lease receivable was recorded in the amount of $131,906. As of June 30, 2023, the value of the lease receivable is $82,087. The lessee is required to make monthly fixed payments of $2,125. The lease has an interest rate of 0.5770%. The value of the deferred inflow of resources as of June 30, 2023 was $81,656, and the City recognized lease revenue of $25,125 during the fiscal year. The lessee has 3 extension options, each for 12 months. On January 1, 2022, the City entered into a 120-month lease as lessor for the use of Civic Center Sheriff Substation. An initial lease receivable was recorded in the amount of $4,710,493. As of June 30, 2023, the value of the lease 63 Page 272 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 8: LEASES (CONTINUED) receivable is $4,035,520. The lessee is required to make monthly fixed payments of $41,645. The lease has an interest rate of 1.2050%. The value of the deferred inflow of resources as of June 30, 2023 was $4,003,920, and the City recognized lease revenue of $471,049 during the fiscal year. The lessee has 1 extension option for 60 months. The principal and interest payments that are expected to maturity are as follows: B. Leases Payable and Lease Assets Primary Government – Governmental Activities On July 1, 2021, the City entered into a 51-month lease as lessee for the use of Xerox Financial Services. An initial lease liability was recorded in the amount of $125,262. As of June 30, 2023, the value of the lease liability is $70,926. The City is required to make monthly fixed payments of $2,646. The lease has an interest rate of 0.6320%. The value of the lease asset as of June 30, 2023 of $125,262 with accumulated amortization of $58,947 is included with equipment on the lease class activities table found below. On July 1, 2021, the City entered into a 145-month lease as lessee for the use of 37023 Cook Street. An initial lease liability was recorded in the amount of $2,468,060. As of June 30, 2023, the value of the lease liability is $2,119,331. The City is required to make monthly fixed payments of $16,621. The lease has an interest rate of 1.2540%. The value of the lease asset as of June 30, 2023 of $2,468,060 with accumulated amortization of $406,544 is included with buildings on the lease class activities table found below. The City has one extension options for 84 months. On November 29, 2021, the City entered into a 60-month lease as lessee for the use of Xerox Financial Services. An initial lease liability was recorded in the amount of $9,962. As of June 30, 2023, the value of the lease liability is $6,869. The City is required to make monthly fixed payments of $178. The lease has an interest rate of 2.1840%. The value of the lease asset as of June 30, 2023 of $9,962 with accumulated amortization of $3,165 is included with equipment on the lease class activities table found below. The principal and interest payments that are expected to maturity are as follows: Fiscal Year Principal Payments Interest Payments Total Payments 2024 799,886$ 64,001$ 863,887$ 2025 749,755 52,327 802,082 2026 596,544 43,590 640,134 2027 588,292 35,471 623,763 2028 567,858 27,424 595,282 2029 - 2033 1,809,654 43,241 1,852,895 Total 5,111,989$ 266,054$ 5,378,043$ Business-Type Activities Fiscal Year Principal Payments Interest Payments Total Payments 2024 218,453$ 26,008$ 244,461$ 2025 227,383 23,394 250,777 2026 212,749 20,718 233,467 2027 207,088 18,104 225,192 2028 208,982 15,498 224,480 2029 - 2033 1,085,116 37,283 1,122,399 2034 - 2038 37,355 59 37,414 Total 2,197,126$ 141,064$ 2,338,190$ Governmental Activities 64 Page 273 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 8: LEASES (CONTINUED) Lease assets by class activity at June 30, 2023 are as follows: Component Unit On July 1, 2021, the Corporation entered into a 444-month lease as lessee for the use of the restaurant at the Desert Willow Golf Course Clubhouse from the City. An initial lease liability was recorded in the amount of $2,636,688. As of June 30, 2023, the value of the lease liability is $2,529,042. The Corporation is required to make monthly fixed payments of $8,000. The lease has an interest rate of 1.705%. The value of the lease asset as of June 30, 2023 of $2,636,688 with accumulated amortization of $142,524 is included with buildings on the lease class activities table found below. The principal and interest payments that are expected to maturity are as follows: Lease assets by class activity at June 30, 2023 are as follows: NOTE 9: SUBSCRIPTIONS For the year ended June 30, 2023, the financial statements include the adoption of GASB Statement No. 96, Subscription-Based Information Technology Arrangements. The primary objective of this statement is to enhance the relevance and consistency of information about governments' subscription activities. This statement establishes a single model for subscription accounting based on the principle that subscriptions are financings of the subscription asset. Under this Statement, an organization is required to recognize a subscription liability and an intangible subscription asset. For additional information, refer to the disclosures below. Amount of Leased Capital Assets Accumulated Amortization Lease assets - building 2,468,060$ 406,544$ Lease assets - equipment 135,224 62,112 2,603,284$ 468,656$ Lease Type Equipment Building Major Class of Underlying Asset Fiscal Year Principal Payments Interest Payments Total Payments 2024 53,295$ 42,705$ 96,000$ 2025 54,211 41,789 96,000 2026 55,142 40,858 96,000 2027 56,090 39,910 96,000 2028 57,054 38,946 96,000 2029 - 2033 300,316 179,684 480,000 2034 - 2038 327,022 152,978 480,000 2039 - 2043 356,101 123,899 480,000 2044 - 2048 387,767 92,233 480,000 2049 - 2053 422,249 57,751 480,000 2054 - 2058 459,795 20,204 479,999 Total 2,529,042$ 830,957$ 3,359,999$ Component Unit Amount of Leased Capital Assets Accumulated Amortization Lease assets - building 2,636,688$ 142,524$ Lease Type Major Class of Underlying Asset Building 65 Page 274 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 9: SUBSCRIPTIONS (CONTINUED) On August 15, 2022, the City entered into a 24-month subscription for the use of DebtBook. An initial subscription liability was recorded in the amount of $123,373. As of June 30, 2023, the value of the subscription liability is $113,623. The City is required to make monthly fixed payments of $9,750. The subscription has an interest rate of 2.0240%. The value of the subscription asset as of June 30, 2023 is $129,123 with accumulated amortization of $56,671. On February 1, 2023, the City entered into a 36-month subscription for the use of Recycle Coach. An initial subscription liability was recorded in the amount of $22,920. As of June 30, 2023, the value of the subscription liability is $15,570. The City is required to make annual fixed payments of $7,350. The subscription has an interest rate of 2.6560%. The value of the subscription asset as of June 30, 2023 is $22,920 with accumulated amortization of $3,183. The City had a termination period of 3 months as of the subscription commencement. On January 1, 2023, the City entered into a 24-month subscription for the use of OpenGov Budgeting and Planning. An initial subscription liability was recorded in the amount of $76,656. As of June 30, 2023, the value of the subscription liability is $37,816. The City is required to make annual fixed payments of $38,840. The subscription has an interest rate of 2.7070%. The value of the subscription asset as of June 30, 2023 is $76,656 with accumulated amortization of $19,164 is included with Software on the Subscription Class activities table found below. On November 15, 2022, the City entered into a 26-month subscription for the use of OpenGov Procurement. An initial subscription liability was recorded in the amount of $72,791. As of June 30, 2023, the value of the subscription liability is $45,893. The City is required to make annual fixed payments of $24,056. The subscription has an interest rate of 3.2070%. The value of the subscription asset as of June 30, 2023 is $72,791 with accumulated amortization of $20,667. On April 14, 2023, the City entered into a 14-month subscription for the use of Zoho Manage Engine. An initial subscription liability was recorded in the amount of $100,176. As of June 30, 2023, the value of the subscription liability is $78,793. The City is required to make monthly fixed payments of $7,255. The subscription has an interest rate of 2.5600%. The value of the subscription asset as of June 30, 2023 is $100,176 with accumulated amortization of $18,366. On February 16, 2023, the City entered into a 60-month subscription for the use of eScribe Agenda Management. An initial subscription liability was recorded in the amount of $133,239. As of June 30, 2023, the value of the subscription liability is $107,888. The City is required to make monthly fixed payments of $25,500. The subscription has an interest rate of 2.6820%. The value of the subscription asset as of June 30, 2023 is $142,180 with accumulated amortization of $10,663. The Vendor has 2 extension option(s), each for 12 months. The principal and interest payments that are expected to maturity are as follows: Fiscal Year Principal Payments Interest Payments Total Payments 2024 274,401$ 10,175$ 284,576$ 2025 67,037 3,233 70,270 2026 27,960 1,559 29,519 2027 30,185 810 30,995 Total 399,583$ 15,777$ 415,360$ Governmental Activities 66 Page 275 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 9: SUBSCRIPTIONS (CONTINUED) Subscription assets include the following at June 30, 2023: NOTE 10: RISK MANAGEMENT AND CLAIMS PAYABLE A. Description of Self-Insurance Pool Pursuant to Joint Power Agreement The City of Palm Desert is a member of the CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (Authority). The Authority is composed of 124 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee. B. Primary Self-Insurance Programs of the Authority Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool. C. Primary Liability Program Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers. The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Subsidence losses also have a $50 million per occurrence limit. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority’s website: https://cjpia.org/coverage/risk-sharing-pools/. D. Primary Workers' Compensation Program Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $75,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers. Amount of Subscription Assets Accumulated Amortization Subscription assets - software 543,846$ 128,714$ Major Class of Underlying Asset 67 Page 276 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 10: RISK MANAGEMENT AND CLAIMS PAYABLE (CONTINUED) For 2022-23 the Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members. E. Pollution Legal Liability Insurance The City of Palm Desert participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of Palm Desert. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million. F. Property Insurance The City of Palm Desert participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City of Palm Desert property is currently insured according to a schedule of covered property submitted by the City of Palm Desert to the Authority. City of Palm Desert property currently has all-risk property insurance protection in the amount of $363,203,889. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible. G. Crime Insurance The City of Palm Desert purchases crime insurance coverage in the amount of $10,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority. H. Special Event Tenant User Liability Insurance The City or Palm Desert further protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the City of Palm Desert according to a schedule. The City of Palm Desert then pays for the insurance. The insurance is facilitated by the Authority. I. Adequacy of Protection During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were no significant reductions in pooled or insured liability coverage in the fiscal year 2022-23. J. Claims Payable Estimates for all workers’ compensation and general liabilities up to the self-insured levels have been recorded as long-term liabilities. 68 Page 277 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 10: RISK MANAGEMENT AND CLAIMS PAYABLE (CONTINUED) Changes in claims liabilities during the past two years are as follows: NOTE 11: DEFERRED COMPENSATION PLAN The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. Pursuant to changes in August 1996, of IRC Section 457, in January 1997, the City established a trust in which all assets held by Nationwide Retirement Solutions, Inc. (NRS) and ICMA Retirement Corporation (ICMA) were placed. In June 2023, the City transitioned all 457 accounts from Nationwide and ICMA to Empower. The City does not have fiduciary responsibility for the plan assets held by NRS, ICMA, or Empower. The assets, all property and rights purchased with such amounts and all income attributable to such amounts are held in trust for the exclusive benefit of the participants and the beneficiaries. The assets are no longer the property of the City, and as such, are no longer subject to the claims of the City’s general creditors. As a result, the assets of the 457 plan in the amount of $7,494,722 held by NRS, ICMA, and Empower of the 457 Plan are not reflected in the City’s financial statements. NOTE 12: PENSION PLAN A. General Information about the Pension Plan: Plan Description All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous Plan, agent multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Benefits Provided CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for the plan are applied as specified by the Public Employees’ Retirement Law. June 30, 2022 June 30, 2023 Claims payable - Beginning of year 384,643$ 564,473$ Incurred claims (including IBNR) and changes in estimates 205,457 299,985 Claims payments (25,627) (184,577) Claims payable - End of year 564,473$ 679,881$ Claims payable - due in one year 186,276 224,361 Claims payable - due in more than one year 378,197 455,520 564,473$ 679,881$ 69 Page 278 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 12: PENSION PLAN (CONTINUED) The Plan’s provisions and benefits in effect at measurement date, are summarized as follows: Employees Covered At June 30, 2022, the following employees were covered by the benefit terms for all Plans: Contributions Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. B. Net Pension Liability The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of Plan is measured as of June 30, 2022, using an annual actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below. Prior to On or after Hire date January 1, 2013 January 1, 2013 Benefit formula 2.7% @ 55 2.0% @ 62 Benefit vesting schedule 5 years of service 5 years of service Benefit payments monthly for life monthly for life Retirement age 50-67 52-67 Monthly benefits, as a % of eligible compensation 2.0% - 2.7% 1.0% - 2.5% Required employee contribution rates 7%-8%6.25% Required employer contribution rates 12.890%12.890% Miscellaneous Inactive employees or beneficiaries currently receiving benefit s89 Inactive employees entitled to but not yet receiving benefits 35 Active employees 97 Total 221 70 Page 279 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 12: PENSION PLAN (CONTINUED) Actuarial Assumptions The total pension liabilities in the June 30, 2022 actuarial valuations were determined using the following actuarial assumptions: *The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using the Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website. Discount Rate The discount rate used to measure the total pension liability was 6.90% for the Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for the plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing of the Plans, the tests revealed the assets would not run out. Therefore, the current 6.90% discount rate is appropriate and the use of the municipal bond rate calculation is not deemed necessary. The long-term expected discount rate of 6.90% is applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained from the CalPERS website under the GASB 68 section. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The target allocation shown was adopted by the CalPERS Board effective on July 1, 2014. Valuation date June 30, 2021 Measurement date June 30, 2022 Actuarial cost method Entry age normal Actuarial assumptions: Discount rate 6.90% Inflation 2.30% Payroll Growth 2.75% Projected Salary Increase Varies by Entry Investment Rate of Return 6.9% Net of Pension Plan Investment and Administrative Expenses; includes Inflation Mortality rate table *Derived using CalPERS' membership data for all funds 71 Page 280 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 12: PENSION PLAN (CONTINUED) C. Changes in the Net Pension Liability The changes in the net pension liability for the year ended June 30, 2023, with a measurement date of June 30, 2022, for the Miscellaneous Plan are as follows: Assumed Asset Asset Class Allocation Real Return 1, 2 Global equity-cap-weighted 30.00%4.54% Global equity-non-cap-weighted 12.00%3.84% Private equity 13.00%7.28% Treasury 5.00%0.27% Mortgage-backed securities 5.00%0.50% Investment grade corporates 10.00%1.56% High yield 5.00%2.27% Emerging market debt 5.00%2.48% Private debt 5.00%3.57% Real assets 15.00%3.21% Leverage -5.00% -0.59% 1 An expected inflation of 2.30% used for this period. 2 Figures are based on the 2021 Asset Liability Management study Total Pension Liability Plan Fiduciary Net Position Net Pension Liability (Asset) Balance at June 30, 2021 (Measurement Date)147,437,667$ 127,850,893$ 19,586,774$ Changes in the Year: Service Cost 1,976,289 - 1,976,289 Interest on the Total Pension Liability 10,122,299 - 10,122,299 Difference between Expected and Actual Experience (2,563,805) - (2,563,805) Changes in Assumptions 4,699,855 - 4,699,855 Net Plan to Plan Resource Movement - - - Contributions - Employer - 4,020,131 (4,020,131) Contributions - Employees - 791,130 (791,130) Net Investment Income - (9,592,025) 9,592,025 Benefit Payments including Refunds of Employee (7,723,744) (7,723,744) - Administrative expense - (79,643) 79,643 Other Misc Income / (Expense)- - - Net Changes 6,510,894 (12,584,151) 19,095,045 Balance at June 30, 2022 (Measurement Date)153,948,561$ 115,266,742$ 38,681,819$ Increase (Decrease) 72 Page 281 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 12: PENSION PLAN (CONTINUED) Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City for the Plan, calculated using the discount rate for the Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate: Pension Plan Fiduciary Net Position Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. D. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2023, the City recognized pension expense of $208,654. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: $4,574,753 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2024. Other amounts reported as deferred inflows of resources related to pensions will be recognized as pension expense as follows: Discount Rate Current Discount Rate -1 Percent Discount Rate +1 Percent (5.90%) (6.90%) (7.90%) Plan's net pension liability/(asset) 58,826,252$ 38,681,819$ 21,984,690$ Deferred Outflows Deferred Inflows of Resources of Resources Pension contributions subsequent to the measurement date 4,574,753$ -$ Change in assumptions 2,959,168 - Differences between expected and actual experience 30,325 1,614,248 Net difference between projected and actual earnings on pension plan investments 5,679,555 - Total 13,243,801$ 1,614,248$ Deferred Outflows/(Inflows) Fiscal year ended June 30, of Resources 2024 1,700,763$ 2025 1,335,314 2026 356,699 2027 3,662,024 Total 7,054,800$ 73 Page 282 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 13: OTHER POST-EMPLOYMENT BENEFITS A. Plan Description In addition to the pension benefits described in Note 11, the City provides other post-employment benefits (OPEB) through the California Employers’ Retiree Benefit Trust Fund (CERBT), an agent multiple-employer defined benefit healthcare plan administered by the California Public Employees’ Retirement System (CalPERS). All full-time or part-time employees who meet the eligibility requirements for this program may continue their medical coverage through the CalPERS Health Plan and receive reimbursement from the City for a portion of the costs for the coverage. Separate financial statements for the CERBT may be obtained by writing to CalPERS at Lincoln Plaza North, 400 Q Street, Sacramento, California 95811, or by visiting the CalPERS website at www.calpers.ca.gov. Employees Hired Prior to January 1, 2008 Eligibility for the stipend requires retirement simultaneously from the City and CalPERS on or after age 50 with at least 10 consecutive years of service with the City. Eligible employees must be covered under the CalPERS Health Plan at the time of retirement and elect to participate in the stipend program within 30 days of retirement. The City’s contribution towards the coverage is based on years of service as follows: Employees Hired On or After January 1, 2008 Eligibility for the stipend requires retirement simultaneously from the City and CalPERS on or after age 50 with at least 15 consecutive years of service with the City. Eligible employees must be covered under the CalPERS Health Plan at the time of retirement and elect to participate in the stipend program within 30 days of retirement. The stipend is discontinued when the retiree reaches Medicare eligibility age. The City’s contribution towards the coverage will be applied to the lowest cost plan and is based on age at retirement and consecutive years of service with the City as outlined in the following table: Employees with at least 5 years of service, not meeting the eligibility requirements for the stipend program, who retire simultaneously from the City and CalPERS are eligible to continue medical coverage through the CalPERS Health Plan. The City is required to pay the CalPERS minimum employer contribution ($149 in 2022 and $151 in 2023) for these employees. Consecutive Years of Service City's Contribution With the City at Retirement Percentage 10 years of service 50% 11 years of service 55% 12 years of service 60% 13 years of service 65% 14 years of service 70% 15 or more years of service 75% Age 1516171819202122232425+ 50 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 51 10% 15% 20% 25% 30% 35% 40% 45% 50% 50% 50% 52 20% 25% 30% 35% 40% 45% 50% 50% 50% 50% 50% 53 30% 35% 40% 45% 50% 50% 50% 50% 50% 50% 50% 54 40% 45% 50% 50% 50% 50% 50% 50% 50% 50% 50% 55+ 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% Consecutive Years of Service at Retirement 74 Page 283 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 13: OTHER POST-EMPLOYMENT BENEFITS (CONTINUED) Employees Hired On or After January 1, 2015 Employees are not eligible for either of the defined retiree health benefits plan but are instead enrolled in the City’s ICMA Retirement Health Savings Account. Employees have a mandatory 1% contribution to the Retirement Health Savings Plan and the City matches the 1% contribution. In addition, an employee can participate in the ICMA 401A Governmental Money Purchase Plan with a maximum pre-tax dollar contribution of 10%, with the City maximum match of 2%. As of June 30, 2022, the date of the most recent actuarial valuation, the City's plan has 97 active employees. Employees Covered - Plan membership, at June 30, 2021 valuation date, membership consisted of the following: B. City Contributions to the Plan City contributions to the Plan occur as benefits are paid to retirees and/or to the OPEB trust. C. Net OPEB Liability/(Asset) The City’s Net OPEB Liability/(Asset) was measured as of June 30, 2022 and the Total OPEB Liability used to calculate the Net OPEB Liability/(Asset) was determined by an actuarial valuation as of June 30, 2021. Standard actuarial update procedures were used to project/discount from valuation to measurement dates. Actuarial assumptions. The total OPEB liability was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: D. Discount Rate GASB 75 requires a discount rate that reflects the following: a) The long-term expected rate of return on OPEB plan investments – to the extent that the OPEB plan’s fiduciary net position (if any) is projected to be sufficient to make projected benefit payments and assets are expected to be invested using a strategy to achieve that return; b) A yield or index rate for 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher – to the extent that the conditions in (a) are not met. Inactive plan members or beneficiaries 124 Active plan members 97 Total 221 Inflation 2.50% Salary Increase 3.00% per annum Assumed Wage Inflation 3.00% per annum Investment Rate of Return 5.50% per annum Healthcare cost-trend rates Assumed to start at 6.5% and grade down by 0.5% each year to 5% in 2024 Retirement Age The City offers the same plans to its retirees as to its active employees, with the general exception that upon reaching age 65 and becoming eligible for Medicare, the retiree must join one of the Medicare Supplement coverages offered under PEMHCA. Mortality Mortality rates used were those published by CalPERS under the 2017 Experience study and projected using the MacLeod Watts Scale 2018 applied generationally. 75 Page 284 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 13: OTHER POST-EMPLOYMENT BENEFITS (CONTINUED) E. Changes in the Net OPEB Liability/(Asset) The changes in the net OPEB liability/(asset) for the Plan are as follows: F. Sensitivity of the Total OPEB Liability and Net OPEB Liability/(Asset) to Changes in the Discount Rate The following presents the total OPEB liability and net OPEB liability/(asset), as well as what the total OPEB liability and net OPEB liability/(asset) would be if they were calculated using a discount rate that is 1-percentage point lower (5.50 percent) or 1-percentage-point higher (6.50 percent) than the current discount rate: G. Sensitivity of the Total OPEB Liability and Net OPEB Liability/(Asset) to Changes in the Health Care Cost Trend Rates The following presents the total OPEB liability and net OPEB liability/(asset), as well as what the total OPEB liability and net OPEB liability/(asset) would be if they were calculated using healthcare cost trend rates that are 1-percentage-point lower (5.70 percent decreasing to 4.70 percent) or 1-percentage-point higher (5.70 percent increasing to 6.70 percent) than the current healthcare cost trend rates: Total OPEB Liability Plan Fiduciary Net Position Net OPEB Liability (Asset) Balance at June 30, 2021 (Measurement Date) 19,628,837$ 23,762,792$ (4,133,955)$ Changes in the Year: Service Cost 294,337 - 294,337 Interest on the Total OPEB Liability 1,205,943 - 1,205,943 Changes in Assumptions 1,691,792 (4,504,553) 6,196,345 Contributions - Employer 1,230,895 (1,230,895) Net Investment Income 1,481,970 (1,481,970) Benefit Payments (944,960) (944,960) - Changes in Benefit Terms - - - Administrative Expenses - (6,034) 6,034 Net Changes 2,247,112 (2,742,682) 4,989,794 Balance at June 30, 2022 (Measurement Date) 21,875,949$ 21,020,110$ 855,839$ Increase (Decrease) Discount Rate Current Discount Rate -1 Percent Discount Rate +1 Percent (4.50%) (5.50%) (6.50%) Net OPEB liability/(asset) 3,679,950$ 855,839$ (1,498,372)$ 1% Decrease Trend Rate 1% Increase Net OPEB liability/(asset) (1,599,584)$ 855,839$ 3,818,003$ 76 Page 285 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 13: OTHER POST-EMPLOYMENT BENEFITS (CONTINUED) H. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2023, the City recognized OPEB expense (revenue) of $610,395. As of fiscal year ended June 30, 2023, the City reported deferred outflows and inflows of resources related to OPEB from the following sources: The City will recognize the contributions made subsequent to the measurement date totaling $1,108,988 in the next fiscal year. In addition, future recognition of the deferred resources is shown below: NOTE 14: SPECIAL ASSESSMENT DEBT Below is a summary of the changes in the special assessment bonds payable: Deferred Outflows Deferred Inflows of Resources of Resources OPEB contributions subsequent to the measurement date 1,108,988$ -$ Change in assumptions 1,633,966 553 Differences between expected and actual experience 73,555 432,989 Net difference between projected and actual earnings on pension plan investments 2,044,360 - Total 4,860,869$ 433,542$ Deferred Outflows/(Inflows) Fiscal year ended June 30, of Resources 2024 891,446$ 2025 949,901 2026 440,465 2027 924,029 2028 23,210 Thereafter 89,288 Total 3,318,339$ Amount Balance Balance Due Within July 1, 2022 Additions Deletions June 30, 2023 One Year 2003 Assessment Revenue Bonds 900,000$ -$ 120,000$ 780,000$ 115,000$ CFD 2021-1 Special Tax Bonds Series 2021 15,200,000 - 245,000 14,955,000 305,000 CFD 2005-1 Special Tax Bonds Series 2021A 5,165,000 - 250,000 4,915,000 270,000 Section 29 Assessment District 2004-02 Limited Obligation Bonds Series 2021 16,400,000 - 685,000 15,715,000 785,000 Total 37,665,000$ -$ 1,300,000$ 36,365,000$ 1,475,000$ 77 Page 286 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 14: SPECIAL ASSESSMENT DEBT (CONTINUED) The City has Special Assessment Bonds Payable issued under the 1911 and 1915, Special Improvement Acts and the 1982 Mello-Roos Community Facilities Act (1982 Bonds). The City has no liability to 1911 Act bondholders until assessments have been collected from the property owner. Such liability is then recorded in the Custodial Funds. Therefore, the 1911 Bonds are not recorded as liabilities in the accompanying financial statements. The City also has no liability to the 1915 Act bondholders, or the bondholders of bonds issued under the 1982 Mello-Roos Community Facilities Act until assessments are collected on the tax rolls. However, the City may take certain actions to assume secondary liability for all or part of 1915 Act Bonds and the 1982 Bonds until such time as foreclosure proceedings are consummated. Special assessment bonds payable, as described below, and are not recorded as long-term liabilities, as these obligations do not constitute a debt or obligation of the City. A.2003 Assessment Revenue Bonds In June 2003, the Palm Desert Financing Authority issued $4,423,000 in 2003 Assessment Revenue Bonds. The proceeds were used to purchase three series of limited obligation improvement bonds issued by the City in connection with the financing and refinancing of certain improvements of benefit to property within the City’s Assessment District No. 94-2 (Sunterrace), Assessment District No. 94-3 (Merano) and Silver Spur Ranch Utility Undergrounding Assessment District No. 01-01. These bonds were issued under the 1915 Improvement Bond Act to provide funds for public improvements in the respective assessment districts. Debt service requirements to maturity are as follows: As of June 30, 2023, the principal amounts to be repaid by the Assessment District No. 01-1 to pay off the loans from the Financing Authority is $780,000. B.Community Facilities District No. 2005-1, Series 2021A In July 2021, the City of Palm Desert Community Facilities District No. 2005-1 (University Park) Special Tax Refunding Bonds, Series 2021A (the “Bonds”) are being issued by City of Palm Desert Community Facilities District No. 2005-1 (University Park) (the “District”) to provide funds: (i) to refund a portion of the District’s outstanding Special Tax Bonds, Series 2006A (the “2006 Bonds”); (ii) to fund a Reserve Account for the Bonds; and (iii) to pay costs incurred in connection with the issuance of the Bonds. The 2006 Bonds were issued for the purpose of providing funds to pay the costs of acquiring certain public facilities. The Bonds are special obligations of the District and are payable solely from Net Taxes (as defined herein), and the other assets pledged therefor under the Indenture, all as further described herein. Special Taxes (as defined herein) are to be levied according to the rate and method of apportionment approved by the City Council of the City and the qualified electors within the District. Interest rates vary from 3.00% to 4.00% with interest payable semi-annually on March 1 and September 1, with principal maturing annually on September 1. Year Ending June 30, Principal Interest Total 2024 115,000$ 38,763$ 153,763$ 2025 120,000 32,519 152,519 2026 125,000 25,934 150,934 2027 135,000 18,947 153,947 2028 140,000 11,556 151,556 2029 145,000 3,897 148,897 Total 780,000$ 131,616$ 911,616$ 78 Page 287 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 14: SPECIAL ASSESSMENT DEBT (CONTINUED) Debt service requirements to maturity are as follows: C. Section 29 Assessment District (No 2004-02), Limited Obligation Improvement Bonds, Series 2021 In July 2021, the City of Palm Desert issued $16,400,000 Limited Obligation Improvement Bonds. The proceeds of the Bonds will be used to refund previously issued series 2017 bonds that financed certain infrastructure improvements within the City’s Section 29 Assessment District (No. 2004-02). The debt service on the bonds is to be paid by assessments secured on the property tax rolls of those properties benefiting from the improvements. interest ranging from 4.00% to 4.70% payable semiannually on March 2 and September 2. Bond maturities begin September 2, 2009 and continue annually through 2020. Term bonds in the amount of $2,525,000 carry an interest rate of 4.75% and mature September 2, 2022. Term bonds in the amount of $5,110,000 carry an interest rate of 5.05% and mature September 2, 2027. Term bonds in the amount of $14,925,000 carry an interest rate of 5.10% and mature September 2, 2037. Debt service requirements to maturity are as follows: D. Community Facilities District No. 2021-1, Series 2021 The City of Palm Desert Community Facilities District No. 2021-1 (University Park) Special Tax Bonds, Series 2021 (the “Bonds”) are being issued by the City of Palm Desert Community Facilities District No. 2021-1 (University Park) (the “District”) to: (i) pay and defease a pro rata portion of outstanding Series 2006A Special Tax Bonds (the “CFD 2005-1 Pro Rata Bonds”) issued by, and secured by the special taxes of existing City of Palm Desert Community Facilities District No. 2005-1 (University Park) (“CFD No. 2005-1”); (ii) finance the acquisition of certain public improvements needed with respect to the development of property located within the District, including public improvements to be owned by the City and water and sewer facilities to be owned and operated by the Coachella Valley Water District; (iii) fund a reserve account for the Bonds; and (iv) pay costs of issuance for the Bonds. Interest rates vary from 3.00% to 4.00% with interest payable semi-annually on March 1 and September 1, with principal maturing annually on September 1. Year Ending June 30, Principal Interest Total 2024 270,000$ 187,050$ 457,050$ 2025 280,000 178,800 458,800 2026 290,000 168,800 458,800 2027 300,000 157,000 457,000 2028 315,000 144,700 459,700 2029-2033 1,780,000 519,600 2,299,600 2034-2037 1,680,000 137,800 1,817,800 Total 4,915,000$ 1,493,750$ 6,408,750$ Year Ending June 30, Principal Interest Total 2024 785,000$ 612,900$ 1,397,900$ 2025 815,000 596,600 1,411,600 2026 850,000 647,600 1,497,600 2027 880,000 513,000 1,393,000 2028 920,000 477,000 1,397,000 2029-2033 5,175,000 1,792,100 6,967,100 2034-2038 6,290,000 649,200 6,939,200 Total 15,715,000$ 5,288,400$ 21,003,400$ 79 Page 288 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 14: SPECIAL ASSESSMENT DEBT (CONTINUED) Debt service requirements to maturity are as follows: E. Bond Reserve Requirements At June 30, 2023, the fund balance reserve requirements and actual reserve balances were as follows: NOTE 15: PRIOR PERIOD ADJUSTMENTS During fiscal year 2023, the City determined that lease agreement between the City and the Corporation was not properly reported in the prior year. Therefore, lease receivable was understated by $2,581,437, deferred inflows of resources was understated by $2,565,426 and fund balance/net position was understated by $19,679 for the fiscal year ended June 30, 2022 in the General Fund and Governmental Activities. The lease payable was understated by $2,581,437, lease asset, net of amortization was understated by $2,565,426 and net position was overstated by $19,679 for the fiscal year ended June 30, 2022 in the Palm Desert Recreation Facility Corporation’s financial statements for the same purpose. During fiscal year 2023, the City determined that due to bondholders in the Custodial Fiduciary Funds was not properly accrued. This was the result of a new interpretation obtained from GASB related to the implementation of GASB Statement No. 84, Fiduciary Funds. This resulted in a restatement of net position totaling $7,790,756 as of June 30, 2022. Year Ending June 30, Principal Interest Total 2024 305,000$ 562,575$ 867,575$ 2025 315,000 553,275 868,275 2026 325,000 543,675 868,675 2027 335,000 533,775 868,775 2028 345,000 523,575 868,575 2029-2033 1,880,000 2,452,300 4,332,300 2034-2038 2,245,000 2,072,500 4,317,500 2039-2043 2,730,000 1,576,400 4,306,400 2044-2048 3,310,000 974,600 4,284,600 2049-2052 3,165,000 259,500 3,424,500 Total 14,955,000$ 10,052,175$ 25,007,175$ Requirement Actual 2003 Financing Authority Revenue Bonds $153,947 $165,720 CFD 2021-1 Special Tax Bonds, Series 2021 868,775 874,214 CFD 2005-1 Special Tax Bonds, Series 2021A 461,800 468,408 Section 29 Assessment District 2004-02 Limited Obligation Bonds Series 2021 1,411,600 1,416,853 80 Page 289 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 16: FUND BALANCES In the fund financial statements, reserves segregate portions of fund balances that are either not available or have been earmarked for specific purposes. The various reserves established as of June 30, 2023, were as follows: 81 Page 290 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 17: CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS Construction Commitments Primary Government NOTE 18: SUCCESSOR AGENCY DISCLOSURES Dissolution of Redevelopment Agency Pursuant to AB X1 26 (adopted by the California Legislature in June 2011) and the State Supreme Court’s decision in California Redevelopment Association, et al. v. Ana Matosantos, et al., 53 Cal. 4th 231 (2011), all redevelopment agencies in the State were dissolved as of February 1, 2012. The City Council adopted Resolution No. 2011-76 on August 25, 2011, pursuant to Health and Safety Code (“HSC”) Section 34172, electing for the City to serve as the Successor Agency (‘SARDA”) to the former Palm Desert Redevelopment Agency (the “Dissolved RDA”). SARDA is tasked with the wind-down of the Dissolved RDA’s affairs. Certain SARDA actions must first be approved by an oversight board, composed of seven-members representing taxing entities. HSC Section 34173(g) expressly provides that SARDA is a separate public entity from the City, and the liabilities and assets of the Dissolved RDA shall not be transferred to the City. Pursuant to HSC Section 34176, the City Council adopted Resolution No. 2012-07, on February 9, 2012, electing to have the Palm Desert Housing Authority to serve as the Housing Successor. The Housing Authority (as the Housing Successor) submitted to the State Department of Finance (“DOF”) a list of housing assets to be transferred by SARDA to the Housing Successor. On August 31, 2012, the DOF issued a letter indicating that the DOF had no objection to such housing asset list. The housing assets (per the housing asset list), obligations, and activities of the Dissolved RDA were transferred to the Housing Successor and are reported in the Housing Asset Fund beginning in fiscal year 2011-12. However, outstanding bonds (“Housing Bonds”), secured by a pledge of moneys which would have been deposited into the Dissolved RDA’s low and moderate income housing fund (known as the “Housing Set Aside”), remain as 82 Page 291 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 18: SUCCESSOR AGENCY DISCLOSURES (CONTINUED) the SARDA’s enforceable obligations. See also “Stipulated Judgment” below. All other assets, obligations, and activities of the Dissolved RDA have been transferred and are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City. The County Auditor-Controller (“CAC”) has established a Redevelopment Property Tax Trust Fund (the “RPTTF”) for SARDA and is charged with depositing into the RPTTF the amount of property taxes that would have been redevelopment property tax increment had the Dissolved RDA not been dissolved. SARDA is required to prepare an annual recognized obligation payment schedule (the “ROPS”) setting forth the amounts due for enforceable obligations from each July 1 through the following June 30. The CAC only makes payments to the SARDA from the RPTTF based on the ROPS amounts approved by the oversight board and the DOF. During fiscal year 2012-13, SARDA was required to conduct due diligence reviews of the low and moderate income housing fund and all other funds to compute the funds (cash) which were not needed to be retained to pay existing enforceable obligations or otherwise unrestricted, and therefore, must be remitted to the CAC. SARDA paid a total amount of $40,988,399 to the CAC based on the due diligence reviews per the DOF’s determination. The DOF issued a Finding of Completion on May 15, 2013 after SARDA remitted such payments. The Finding of Completion allows the placement of certain loans (“Advances”) made by the City to the Dissolved RDA (which were previously voided by operation of law upon the Dissolved RDA’s dissolution) on the ROPS. For each approved repayment 20% of the repayment amount must be allocated to the Housing Asset Fund. The repayment of the Advances, pursuant to the oversight board’s and the DOF’s approval, began during fiscal year 2019-20. During fiscal year 2022-23, the City received a final determination from the California Department of Finance that these advances would not be deemed an enforceable obligation. There is no financial statement impact as these balances were offset by an allowance for doubtful accounts in previous years. The California State Controller was directed to review the propriety of any transfers of assets between the Dissolved RDA and other public bodies that occurred after January 1, 2011. The State Controller completed its review on March 14, 2013 and did not identify any unallowable transfers of assets that occurred between the Dissolved RDA and the City or other public agencies. SARDA’s use and disposition of all real properties held (Long Range Property Management Plan (“LRPMP”), was approved by the DOF on June 2, 2014. The LRPMP allowed the SARDA to transfer property used for government purposes with a cost basis of $6,390,263 to the City. Stipulated Judgment On May 15, 1991, the Riverside County Superior Court entered a final judgment incorporating the terms of a Stipulation for Entry of Judgment (“Original Stipulation”) in Case No. 51124 and a Stipulation for Entry of Judgment pursuant to Settlement Agreement and Mutual Release (“Settlement Agreement”) in Case No. 51124, among the Dissolved RDA, the City, the Western Center on Law and Poverty, Inc., California Rural Legal Assistance, and others. On June 18, 1997 and on September 20, 2002, the Riverside County Superior Court amended the judgment, incorporating Stipulations Amending Stipulation for Entry of Judgment. The judgment, as amended (the “Judgment”), generally required the Dissolved RDA to use 20% of its tax increment revenues, and additional tax increment revenues if necessary, to develop, rehabilitate, or otherwise financially assist affordable housing units and to meet certain housing needs of the City. Before dissolution, the Dissolved RDA used its Housing Set-Aside to fulfill its obligations under the Judgment (including the payment of debt service on the Housing Bonds issued to finance and refinance affordable housing projects that satisfied the requirements of both the Judgment and the relevant Redevelopment Law provisions). While the low and moderate income housing fund and the requirement to deposit the Housing Set-Aside into such fund have been eliminated upon the Dissolved RDA’s dissolution, SARDA continues to recognize the Judgment as its enforceable obligation. On its 83 Page 292 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 18: SUCCESSOR AGENCY DISCLOSURES (CONTINUED) ROPS, the SARDA has included line items designated as “Stipulation Judgment Case No. 51124,” listing the amounts necessary to fulfill its obligations under the Judgment (after taking into account the amounts already listed for the repayment of the Housing Bonds). While the DOF originally approved such line items, the DOF changed its position beginning with ROPS 14-15A (i.e., covering the period commencing July 1, 2014). On August 14, 2014, SARDA filed an action, SARDA to the Palm Desert Redevelopment Agency v. Michael Cohen, Sacramento Superior Court Case No. 34-2014-00167698 (the “Successor Agency Lawsuit”), seeking to compel the DOF to permit payment of the affordable housing obligations mandated by the Judgment. Subsequently, in view of the fact that there were similar cases pending in the California Court of Appeal (Third District), the SARDA voluntarily dismissed its action without prejudice pending resolution of those other cases. To date, none of the other cases has resulted in a decision that would compel the DOF to permit payment of the obligations under the Judgment as an enforceable obligation. The assets and liabilities of the Dissolved RDA (except for those transferred to the Housing Successor and reported in the Housing Asset Fund) have been transferred to the SARDA. The SARDA is acting in a fiduciary capacity for the assets and liabilities. Disclosures related to these transactions are as follows: Capital Assets During the year ending June 30, 2023, the SARDA sold land with a cost basis of $6,682,705 for a sales price of $12,167,792. These proceeds are required to be remitted to the County of Riverside for distribution to the taxing entities in accordance with the Health and Safety Code. As of June 30, 2023, $7,660,205 has been remitted to the County of Riverside and the remaining $4,507,587 has been accrued in Due to Other Governments for distribution in Fiscal Year 2023-2024. Tax Allocation Bonds A summary of changes in tax allocation bonds at June 30, 2023, was as follows:’ The tax allocation revenues bonds issued before 2011 (i.e., before the dissolution of the Dissolved RDA) were issued by the Palm Desert Financing Authority, the proceeds of which were loaned to the Dissolved RDA for financing or refinancing redevelopment projects. Pursuant to the bond documents, the Authority’s bonds were Balance Balance July 1, 2022 Additions Deletions June 30, 2023 Capital assets, not being depreciated: Land 23,909,102$ -$ (6,682,705)$ 17,226,397$ Total capital assets, not being depreciated 23,909,102 - (6,682,705) 17,226,397 Total fuduciary fund capital assets 23,909,102$ -$ (6,682,705)$ 17,226,397$ Amount Balance Balance Due Within July 1, 2022 Additions Deletions June 30, 2023 One Year 2003 TARBs, $15,745,000 15,745,000$ -$ -$15,745,000$ 875,000$ 2017 A TARBs, $52,390,000 39,600,000 - 3,195,000 36,405,000 715,000 2017 B TARBs, $140,130,000 105,750,000 -9,405,000 96,345,000 11,675,000 2017 H-A TARBs, $7,365,000 5,455,000 - 430,000 5,025,000 455,000 2017 H-B TARBs, $45,815,000 12,210,000 - 6,015,000 6,195,000 6,195,000 Subtotal 178,760,000 -19,045,000 159,715,000 19,915,000 Add: Unamortized bond premium 5,363,049 723,806 4,639,243 - Less: Unamortized bond discount (1,602,609) - (134,731) (1,467,878) - Total 182,520,440$ -$ 19,634,075$ 162,886,365$ 19,915,000$ 84 Page 293 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 18: SUCCESSOR AGENCY DISCLOSURES (CONTINUED) secured by the Dissolved RDA’s (and after dissolution, are secured by the Successor Agency’s) repayment of the loans were secured by tax increment (after the Dissolved RDA’s dissolution, are secured by certain moneys deposited in the RPTTF, see Notes 19) and other funds as provided in the bond documents. In January 2017, the Successor Agency issued four series of bonds: (i) the Tax Allocation Refunding Bonds, 2017 Series A, in the aggregate principal amount of $52,390,000 (the “2017A Bonds”), (ii) the Taxable Tax Allocation Refunding Bonds, 2017 Series B, in the aggregate principal amount of $140,130,000 (the “2017B Bonds”), (iii) the Tax Allocation Refunding Bonds, 2017 Series H-A, in the aggregate principal amount of $7,365,000 (the “2017H-A Bonds”); and (iv) the Taxable Tax Allocation Refunding Bonds, 2017 Series H-B, in the aggregate principal amount of $45,815,000 (the “2017H-B Bonds”). As further described below, the 2017 refunding refunded all of the outstanding tax allocation revenue bonds, except for the Project Area No. 2 2003 Bonds. None of these bonds or any interest thereon are a debt of the City, the State of California or any of its political subdivisions (except for the Successor Agency), and none the City, the State of California nor any of its political subdivisions (except for the Successor Agency) is liable on the bonds, nor in any event shall the bonds and interest thereon be payable out of any funds or properties other than those provided under the respective bond documents. The remaining outstanding Project Area No. 2 2003 Bonds were insured by MBIA Insurance Corporation (“MBIA”). On February 18, 2009, MBIA announced the restructuring of its financial guaranty insurance operations into two separately capitalized sister companies, with one entity (MBIA Illinois) assuming the risk associated with its U.S. municipal exposures, and the other (MBIA Corp) insuring the remainder of the portfolio. Effective March 19, 2009, MBIA Illinois was renamed National Public Finance Guarantee Corporation (“NPFGC”). Some (but not all) of the maturities of each series of the 2017 Bonds are insured by Build America Mutual Assurance Company. 2003 Series Tax Allocation Revenue Bonds (Project Area No. 2) On March 26, 2003, the Palm Desert Financing Authority issued $15,745,000 of Tax Allocation Revenue Bonds (Project Area No. 2) 2003 Series. The Palm Desert Financing Authority loaned the bond proceeds to the Dissolved RDA to fund various redevelopment capital projects in Project Area No. 2. Interest rates on the bonds vary from 4.5% to 5.0% per annum payable semi-annually on February 1 and August 1, with principal maturing as follows: The future debt service requirements on the 2003 Series Tax Allocation Revenue Bonds (Project Area No. 2) are as follows: 2017 Series A Tax Allocation Refunding Bonds On January 31, 2017, the Successor Agency issued the 2017A Bonds, in the principal amount of $52,390,000. The proceeds from the 2017A Bonds were utilized to refund the Project Area No. 1 2002A Bonds, Project Area No. 1 2003 Bond, Project Area No. 1 2004 Bonds, the Project Area No. 2 2002A Bonds, and the Project Area No. 4 1998 Bonds and pay certain costs associated with the issuance of the bonds. Year Ending June 30, Principal Interest Total 2024 875,000$ 749,319$ 1,624,319$ 2025 910,000 709,156 1,619,156 2026 1,145,000 662,203 1,807,203 2027 1,340,000 604,738 1,944,738 2028 1,405,000 538,625 1,943,625 2029-2033 8,175,000 1,536,875 9,711,875 2034 1,895,000 47,375 1,942,375 Total 15,745,000$ 4,848,291$ 20,593,291$ 85 Page 294 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 18: SUCCESSOR AGENCY DISCLOSURES (CONTINUED) Interest rates on the bonds vary from 2.00% to 5.00% per annum payable semi-annually on April 1 and October 1, commencing April 1, 2017, with principal maturing annually on October 1. As of June 30, 2023, the outstanding principal balance on the bonds $36,405,000. The future debt service requirements on the 2017A Bonds are as follows: 2017 Series B Tax Allocation Refunding Bonds On January 31, 2017, the Successor Agency issued the 2017B Bonds, in the principal amount of $140,130,000. The proceeds from the 2017B Bonds were utilized refund the Project Area No. 1 2006A Bonds, the Project Area No. 2 2006A Bonds, the Project Area No. 2 2006D Bonds, the Project Area No. 3 2003 Bonds, the Project No. 3 2006A Bonds, the Project Area No. 3 2006B Bonds, the Project Area No. 3 2006C Bonds, the Project Area No. 4 2001 Bonds, the Project Area No. 4 2006A Bonds, and the Project Area No. 4 2006B Bonds and pay certain costs associated with the issuance of the bonds. Interest rates on the bonds vary from 1.25% to 4.25% per annum payable semi-annually on April 1 and October 1, commencing April 1, 2017, with principal maturing annually on October 1. As of June 30, 2023, the outstanding principal balance on the bonds is $96,345,000. The future debt service requirements on the 2017B Bonds are as follows: 2017 Series H-A Tax Allocation Refunding Bonds On January 31, 2017, the Successor Agency issued the 2017H-A Bonds, in the principal amount of $7,365,000. The proceeds from the 2017H-A Bonds were used to refund the 2002 Housing Bonds and pay certain costs associated with the issuance of the bonds. Year Ending June 30, Principal Interest Total 2024 715,000$ 1,802,375$ 2,517,375$ 2025 6,630,000 1,618,750 8,248,750 2026 6,910,000 1,280,250 8,190,250 2027 5,245,000 976,375 6,221,375 2028 5,495,000 707,875 6,202,875 2029-2031 11,410,000 841,250 12,251,250 Total 36,405,000$ 7,226,875$ 43,631,875$ Year Ending June 30, Principal Interest Total 2024 11,675,000$ 3,422,400$ 15,097,400$ 2025 5,585,000 3,160,009 8,745,009 2026 5,710,000 2,979,956 8,689,956 2027 8,060,000 2,751,156 10,811,156 2028 4,790,000 2,531,319 7,321,319 2029-2033 30,135,000 9,533,322 39,668,322 2034-2038 27,755,000 2,783,431 30,538,431 2039-2042 2,635,000 229,606 2,864,606 Total 96,345,000$ 27,391,199$ 123,736,199$ 86 Page 295 of 1128 CITY OF PALM DESERT Notes To Basic Financial Statements Year Ended June 30, 2023 NOTE 18: SUCCESSOR AGENCY DISCLOSURES (CONTINUED) Interest rates on the bonds vary from 2.00% to 5.00% per annum payable semi-annually on April 1 and October 1, commencing April 1, 2017, with principal maturing annually on October 1. As of June 30, 2023, the outstanding principal balance on the bonds is $5,025,000. The future debt service requirements on the 2017 Series H-A Tax Allocation Refunding Bonds are as follows: 2017 Series H-B Tax Allocation Refunding Bonds On January 31, 2017, the Successor Agency issued the 2017H-B Bonds, in the principal amount of $45,815,000. The proceeds from the 2017 H-B Bonds were used to refund the 2007 Housing Bond and pay certain costs associated with the issuance of the bonds. Interest rates on the bonds vary from 1.25% to 3.00% per annum payable semi-annually on April 1 and October 1, commencing April 1, 2017, with principal maturing annually on October 1. As of June 30, 2023, the outstanding principal balance on the bonds is $6,195,000. The future debt service requirements on the 2017H-B Bonds are as follows: NOTE 19: SUBSEQUENT EVENTS The City evaluated subsequent events for recognition and disclosure through January 30, 2024, the date on which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2023, that required recognition or disclosure in these financial statements. Year Ending June 30, Principal Interest Total 2024 455,000$ 216,144$ 671,144$ 2025 475,000 192,894 667,894 2026 505,000 168,394 673,394 2027 525,000 142,644 667,644 2028 555,000 115,644 670,644 2029-2033 2,510,000 186,784 2,696,784 Total 5,025,000$ 1,022,504$ 6,047,504$ Year Ending June 30, Principal Interest Total 2024 6,195,000$ 92,925$ 6,287,925$ Total 6,195,000$ 92,925$ 6,287,925$ 87 Page 296 of 1128 CITY OF PALM DESERT Miscellaneous Plan - Agent Multiple-Employer Schedule of Changes in Net Pension Liability and Related Ratios As of June 30, for the Last Ten Fiscal Years (1) 2015 2016 2017 2018 TOTAL PENSION LIABILITY Service Cost 2,156,598$ 2,125,437$ 2,076,964$ 2,204,265$ Interest 7,991,591 8,223,320 8,327,823 8,558,529 Difference between Expected and Actual Experience - (2,378,254) (4,259,317) (1,895,482) Changes in Assumptions - (2,091,348) - 7,367,723 Benefit Payments, Including Refunds of Employee Contributions (4,849,320) (4,597,025) (4,801,252) (5,401,531) Net Change in Total Pension Liability 5,298,869 1,282,130 1,344,218 10,833,504 Total Pension Liability - Beginning 107,900,900 113,199,769 114,481,899 115,826,117 Total Pension Liability - Ending (a) 113,199,769$ 114,481,899$ 115,826,117$ 126,659,621$ PLAN FIDUCIARY NET POSITION Contributions - Employer 3,320,450$ 4,065,411$ 4,257,322$ 5,303,371$ Contributions - Employee 995,504 878,171 870,981 828,467 Net Investment Income 11,290,314 1,682,498 448,184 8,800,663 Benefit Payments, Including Refunds of Employee Contributions (4,849,320) (4,597,025) (4,801,252) (5,401,531) Administrative Expense - (87,279) (47,263) (115,573) Net Plan to Plan Resource Movement - -- - Other Miscellaneous Income/(Expense)- -- - Net Change in Fiduciary Net Position 10,756,948 1,941,776 727,972 9,415,397 Plan Fiduciary Net Position - Beginning 64,851,550 75,608,498 77,550,274 78,278,246 Plan Fiduciary Net Position - Ending (b)75,608,498$ 77,550,274$ 78,278,246$ 87,693,643$ Plan Net Pension Liability/(Assets) - Ending (a) - (b)37,591,271$ 36,931,625$ 37,547,871$ 38,965,978$ 66.79%67.74%67.58% 69.24% Covered Payroll 11,110,759$ 11,448,621$ 11,342,713$ 10,684,238$ 338.33%322.59%331.03% 364.71% Notes to Schedule: Plan Fiduciary Net Position as a Percentage of the Total Pension Liability Plan Net Pension Liability/(Asset) as a Percentage of Covered Payroll (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only nine years are shown. Benefit Changes: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the measurement date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary. Changes of Assumptions: None in 2020-2022. In 2019, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2018, the discount rate was reduced from 7.65% to 7.15%. In 2017, there were no changes. In 2016, amounts reported reflect an adjustment of the discount rate from 7.50% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2015, amounts reported were based on the 7.50% discount rate. 88 Page 297 of 1128 2019 2020 2021 2022 2023 2,196,462$ 1,973,971$ 2,086,683$ 2,042,043$ 1,976,289$ 8,797,867 9,261,660 9,645,145 10,005,168 10,122,299 (594,882) 1,762,387 533,373 116,967 (2,563,805) (1,148,708) - - - 4,699,855 (5,934,338) (6,383,377) (6,540,485) (7,041,890) (7,723,744) 3,316,401 6,614,641 5,724,716 5,122,288 6,510,894 126,659,621 129,976,022 136,590,663 142,315,379 147,437,667 129,976,022$ 136,590,663$ 142,315,379$ 147,437,667$ 153,948,561$ 5,407,412$ 5,963,737$ 4,521,813$ 4,729,858$ 4,020,131$ 812,447 791,794 805,528 745,959 791,130 7,555,653 6,322,815 5,102,524 24,010,711 (9,592,025) (5,934,338) (6,383,377) (6,540,485) (7,041,890) (7,723,744) (136,651) (67,893) (143,465) (105,400) (79,643) (222) - - - - (259,502) 222 - - - 7,444,799 6,627,298 3,745,915 22,339,238 (12,584,151) 87,693,643 95,138,442 101,765,740 105,511,655 127,850,893 95,138,442$ 101,765,740$ 105,511,655$ 127,850,893$ 115,266,742$ 34,837,580$ 34,824,923$ 36,803,724$ 19,586,774$ 38,681,819$ 73.20% 74.50% 74.14% 86.72% 74.87% 10,751,687$ 9,807,088$ 10,353,849$ 10,386,791$ 9,621,662$ 324.02% 355.10% 355.46% 188.57% 402.03% 89 Page 298 of 1128 CITY OF PALM DESERT Miscellaneous Plan - Agent Multiple-Employer Schedule of Plan Contributions As of June 30, For the Last Ten Fiscal Years (1) 2015 2016 2017 2018 Actuarially Determined Contribution 3,393,171$ 3,585,082$ 3,550,127$ 4,219,764$ Contribution in Relation to the Actuarially Determined Contribution (4,065,411) (4,257,322) (5,303,371) (5,396,908) Contribution Deficiency (Excess)(672,240)$ (672,240)$ (1,753,244)$ (1,177,144)$ Covered Payroll 11,448,621$ 11,342,713$ 10,684,238$ 10,751,687$ Contributions as a Percentage of Covered Payroll 35.51%37.53% 49.64% 50.20% Note to Schedule: Valuation Date: Methods and assumptions used to determine contribution rates: Actuarial cost method Amortization method/period Asset valuation method Inflation Salary increases Payroll growth Investment rate of return Retirement age Mortality 6.9% net of pension investment and administrative expenses, including The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and post-retirement mortality rates include 15 years of projected mortality improvement using the 90% scale MP 2016 published by the Society of (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only nine years are shown. June 30, 2021 2.750% Varies by entry age and service 2.300% Market value Level percentage of payroll, closed Entry age normal See Notes to Required Supplementary Information. 90 Page 299 of 1128 2019 2020 2021 2022 2023 4,225,204$ 4,736,668$ 4,936,652$ 4,123,142$ 4,574,753$ (5,963,737) (4,521,813) (4,729,797) (4,123,142) (4,574,753) (1,738,533)$ 214,855$ 206,855$ -$ -$ 9,807,088$ 10,353,849$ 10,386,791$ 9,621,662$ 10,601,359$ 60.81% 43.67% 45.54% 42.85% 43.15% See Notes to Required Supplementary Information. 91 Page 300 of 1128 CITY OF PALM DESERT Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios As of June 30, for the Last Ten Fiscal Years (1) 2018 2019 2020 Total OPEB Liability Service cost 346,417$ 357,675$ 369,299$ Interest on the total OPEB liability 1,144,106 1,199,747 1,256,431 Differences between expected and actual experience - - (4,066,457) Changes in assumptions - - 2,552,767 Changes in benefit terms - - - Benefit payments (653,187) (696,845) (756,759) Net change in total OPEB liability 837,336 860,577 (644,719) Total OPEB liability - beginning 16,980,271 17,817,607 18,678,184 Total OPEB liability - ending (a)17,817,607$ 18,678,184$ 18,033,465$ Plan Fiduciary Net Position Contribution - employer 1,255,960$ 1,381,501$ 2,408,260$ Net investment income 902,331 843,319 1,226,966 Benefit payments (653,187) (696,845) (756,759) Administrative expense (6,541) (7,371) (3,515) Other Expenses - (18,115) - Net change in plan fiduciary net position 1,498,563 1,502,489 2,874,952 Plan fiduciary net position - beginning 12,198,460 13,697,023 15,199,512 Plan fiduciary net position - ending (b)13,697,023 15,199,512 18,074,464 Net OPEB Liability/(Asset) - ending (a) - (b)4,120,584$ 3,478,672$ (40,999)$ Plan fiduciary net position as a percentage of the total OPEB liability/(asset)76.87% 81.38% 100.23% Covered-Employee payroll 10,741,786$ 10,546,052$ 11,382,103$ Net OPEB liability/(asset) as a percentage of covered-employee payroll 38.36% 32.99% -0.36% (1)Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available. See Notes to Required Supplementary Information. 92 Page 301 of 1128 2021 2022 2023 366,971$ 378,897$ 294,337$ 1,117,500 1,161,531 1,205,943 - - - - 1,053,761 1,691,792 - (910,834) - (752,486) (819,968) (944,960) 731,985 863,387 2,247,112 18,033,465 18,765,450 19,628,837 18,765,450$ 19,628,837$ 21,875,949$ 1,280,453$ 1,140,548$ 1,230,895$ 977,487 3,878,532 (3,022,583) (752,486) (819,968) (944,960) (9,045) (7,193) (6,034) - - - 1,496,409 4,191,919 (2,742,682) 18,074,464 19,570,873 23,762,792 19,570,873 23,762,792 21,020,110 (805,423)$ (4,133,955)$ 855,839$ 104.29% 121.06% 96.09% 10,881,697$ 11,208,147$ 12,780,729$ -7.40% -36.88%6.70% See Notes to Required Supplementary Information. 93 Page 302 of 1128 CITY OF PALM DESERT Schedule of Plan Contributions - OPEB As of June 30, for the Last Ten Fiscal Years (1) 2018 2019 2020 520,620$ 455,021$ 348,915$ (1,217,465) (2,211,778) (1,280,453) (696,845)$ (1,756,757)$ (931,538)$ 10,741,786$ 10,546,052$ 11,382,103$ 11.33% 20.97% 11.25% Notes to Schedule: Methods and assumptions used to determine contributions: Actuarial Cost Method Amortization Valuation Method/Period Asset Valuation Method Market Value Inflation 2.50% Payroll Growth Investment Rate of Return 5.50% per Healthcare cost-trend rates Retirement Age Mortality (1)Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Actuarially Determined Contribution Contribution in Relation to the Actuarially Determined Contributions Contribution Deficiency (Excess) Covered-Employee payroll Contributions as a percentage of covered-employee payroll Entry Age Normal Level percent of payroll over 3.00% per annum, in aggregate Assumed to start at 6.5% and grade down by 0.5% each year to 5% in 2024 The City offers the same plans to its retirees as to its active employees, with the general exception that upon reaching age 65 and becoming eligible for Medicare, the retiree must join one of the Medicare Supplement coverages under PEMHCA. Mortality rates used were those published by CalPERS under the 2017 Experience study and projected using the MacLeod Watts Scale 2018 applied generationally. 94 Page 303 of 1128 2021 2022 2023 320,508$ 994,088$ 452,627$ (1,140,548) (994,088) (1,108,988) (820,040)$ -$ (656,361)$ 10,881,697$ 11,208,147$ 12,780,729$ 10.48%8.87%8.68% 95 Page 304 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule by Department General Fund Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1, as restated 119,900,532$ 119,900,532$ 119,900,532$ -$ Resources (Inflows): Taxes Property taxes 7,230,029 7,230,029 7,918,559 688,530 Property transfer tax 774,000 774,000 934,735 160,735 Property tax in lieu 4,800,000 4,800,000 5,033,448 233,448 Timeshare mitigation fee 1,584,000 1,584,000 1,711,324 127,324 Sales tax 25,673,460 25,673,460 26,354,774 681,314 Business license tax 1,200,000 1,200,000 1,139,514 (60,486) Job valuation fees 32,947 32,947 45,187 12,240 Transient occupancy tax 17,815,000 17,815,000 23,825,410 6,010,410 Franchises 3,150,000 3,150,000 3,574,273 424,273 Penalties and interest on taxes 20,000 20,000 185,219 165,219 Total Taxes 62,279,436 62,279,436 70,722,443 8,443,007 Licenses and Permits Building permits 900,000 1,500,000 2,275,257 775,257 Grading permits 25,000 25,000 15,717 (9,283) Encroachment permits 40,000 200,000 226,113 26,113 Miscellaneous permits --530 530 Business regulatory permits 22,500 22,500 19,388 (3,112) Golf cart permits 945 945 2,380 1,435 Valet parking permits 550 550 75 (475) Total Licenses and Permits 988,995 1,748,995 2,539,460 790,465 Intergovernmental State mandate cost --94,795 94,795 Motor vehicle in-lieu fees 24,000 24,000 52,162 28,162 Monthly parking bail 10,000 10,000 4,332 (5,668) Reimbursement RDA costs 700,000 700,000 1,052,201 352,201 Other reimbursements 626,500 626,500 412,029 (214,471) Total Intergovernmental 1,360,500 1,360,500 1,615,519 255,019 Rental Income 155,000 155,000 138,649 (16,351) Charges for Services Subdivision fees 500,000 500,000 451,094 (48,906) Zoning fees 40,000 40,000 52,200 12,200 Plan check fees 335,500 600,000 644,448 44,448 Sale of maps and publications 5,000 5,000 8,210 3,210 Microfilm fees 500 500 199 (301) Vehicle impact fee 625,000 625,000 595,493 (29,507) Other fees 135,450 135,450 167,222 31,772 Total Charges for Services 1,641,450 1,905,950 1,918,866 12,916 Investment Earnings Interest income 450,000 450,000 4,853,178 4,403,178 Interest on notes receivable 200,000 200,000 172,356 (27,644) Total Investment Earnings 650,000 650,000 5,025,534 4,375,534 Fines and Forfeitures Vehicle code fines 35,000 35,000 22,197 (12,803) Municipal court fines 25,000 25,000 7,789 (17,211) VICR fees 75,000 75,000 89,716 14,716 Total Fines and Forfeitures 135,000 135,000 119,702 (15,298) Miscellaneous Code compliance 150,000 150,000 152,450 2,450 Certificate of compliance fee 500 500 200 (300) Nuisance abatement tax 20,000 20,000 3,511 (16,489) Abandoned vehicle abatement 38,000 38,000 69,162 31,162 Other revenue 157,000 267,000 343,233 76,233 Total Miscellaneous 365,500 475,500 568,556 93,056 Transfers In 3,604,700 3,075,963 2,478,731 (597,232) Amounts Available for Appropriations 191,081,113 191,686,876 206,009,835 14,322,959 Year Ended June 30, 2023 See Notes to Required Supplementary Information.96 Page 305 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule by Department General Fund Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Year Ended June 30, 2023 Charges to Appropriation (Outflow): General Government City Council 291,198 344,078 246,156 97,922 City Clerk 886,160 1,047,726 941,796 105,930 Legislative Advocacy 39,655 39,655 36,000 3,655 Elections 326,500 405,491 405,574 (83) City Attorney 304,337 304,337 296,988 7,349 Legal Special Services 309,986 409,986 452,317 (42,331) City Manager 1,184,119 1,179,950 1,077,518 102,432 Community Services - - 80,042 (80,042) Finance 2,114,050 2,459,750 2,041,090 418,660 Independent Audit 90,000 117,000 145,036 (28,036) Human Resources 798,160 1,282,478 835,145 447,333 General Services 7,244,134 4,738,486 4,281,784 456,702 Information Technology 2,319,961 2,672,246 2,319,470 352,776 Unemployment Insurance 10,000 10,000 138 9,862 Insurance 1,124,000 1,124,000 1,029,186 94,814 Contributions to Other Agencies 628,500 781,500 773,889 7,611 Community Promotions 1,189,500 1,332,200 1,347,204 (15,004) Marketing 1,818,030 2,025,980 1,523,041 502,939 Visitors Information Center 12,930 12,930 27,166 (14,236) Economic Development Center 993,200 2,422,575 1,413,836 1,008,739 Planning & Community Development 1,932,950 1,909,657 2,057,343 (147,686) Total General Government 23,617,370 24,620,025 21,330,719 3,289,306 Public Safety Police Services 20,976,865 20,976,865 20,403,994 572,871 Animal Regulation 336,977 336,977 409,231 (72,254) Traffic Safety 1,171,900 1,189,250 915,244 274,006 Building and Safety 1,483,239 1,736,125 1,366,067 370,058 Community Safety 435,000 785,000 210,021 574,979 Total Public Safety 24,403,981 25,024,217 23,304,557 1,719,660 Parks, Recreation, and Culture Civic Center Park 1,752,200 1,739,592 1,674,247 65,345 Park Maintenance 1,196,000 1,277,088 1,106,087 171,001 Landscaping Service 2,729,305 2,994,874 2,693,153 301,721 Civic Center Park - Improvement 145,000 145,000 88,512 56,488 Total Parks, Recreation and Culture 5,822,505 6,156,554 5,561,999 594,555 Public Works Administration 3,056,050 3,144,625 3,026,733 117,892 Street Maintenance 2,066,250 2,290,900 2,156,583 134,317 Street Resurfacing 300,000 300,000 - 300,000 Curb & Gutter 25,000 25,000 14,980 10,020 Parking Lot 440,000 223,000 - 223,000 Corporate Yard 158,000 220,500 189,549 30,951 Auto Fleet / Equipment 299,000 396,000 328,117 67,883 Public Bldg - Opr/Maint. 895,000 1,088,400 998,577 89,823 Portola Community Center 192,000 182,000 164,663 17,337 Total Public Works 7,431,300 7,870,425 6,879,202 991,223 Capital Outlay 162,000 175,500 685,071 (509,571) Debt service:- Principal retirement - - 129,574 (129,574) Interest and fiscal charges - - 4,498 (4,498) Transfers Out 8,106,823 25,018,281 24,813,041 205,240 Contribution to Other Government - - 834,654 (834,654) Total Charges to Appropriations 71,176,429 90,502,802 85,093,323 5,409,479 Budgetary Fund Balance, June 30 119,904,684$ 101,184,074$ 120,916,512$ 19,732,438$ See Notes to Required Supplementary Information.97 Page 306 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Prop A Fire Tax Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 12,682,312$ 12,682,312$ 12,682,312$ -$ Resources (Inflows): Taxes 7,000,000 7,000,000 9,169,242 2,169,242 Assessments 2,200,000 2,200,000 2,138,587 (61,413) Intergovernmental 1,100,000 1,100,000 1,457,526 357,526 Charges for services 2,400,000 2,400,000 3,100,323 700,323 Investment earnings 20,000 20,000 222,043 202,043 Transfers in 4,600,000 4,600,000 4,600,000 - Amounts Available for Appropriations 30,002,312 30,002,312 33,370,033 3,367,721 Charges to Appropriation (Outflow): Public safety 17,057,875 18,185,785 16,970,960 1,214,825 Capital outlay t 638,400 1,751,820 660,442 1,091,378 Total Charges to Appropriations 17,696,275 19,937,605 17,631,402 2,306,203 Budgetary Fund Balance, June 30 12,306,037$ 10,064,707$ 15,738,631$ 5,673,924$ Year ended June 30, 2023 See Notes to Required Supplementary Information. 98 Page 307 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Housing Asset Fund Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 48,603,279$ 48,603,279$ 48,603,279$ -$ Resources (Inflows): Investment earnings 95,000 95,000 1,554,962 1,459,962 Miscellaneous - - 38,780 38,780 Proceeds from sale of capital asset - - 293,804 293,804 Amounts Available for Appropriations 48,698,279 48,698,279 50,490,825 1,792,546 Charges to Appropriation (Outflow): Housing and redevelopment 423,650 7,758,650 419,870 7,338,780 Capital outlay 300,000 200,000 56,074 143,926 Total Charges to Appropriations 723,650 7,958,650 475,944 7,482,706 Budgetary Fund Balance, June 30 47,974,629$ 40,739,629$ 50,014,881$ 9,275,252$ Year ended June 30, 2023 See Notes to Required Supplementary Information. 99 Page 308 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Housing Authority Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 19,125,056$ 19,125,056$ 19,125,056$ -$ Resources (Inflows): Rental income 8,028,316 8,028,316 8,737,330 709,014 Investment earnings 20,000 20,000 685,559 665,559 Amounts Available for Appropriations 27,173,372 27,173,372 28,547,945 1,374,573 Charges to Appropriation (Outflow): Housing and redevelopment #d 9,659,554 11,435,247 8,874,525 2,560,722 Transfers out 446,400 439,500 415,990 23,510 Total Charges to Appropriations 10,105,954 11,874,747 9,290,515 2,584,232 Budgetary Fund Balance, June 30 17,067,418$ 15,298,625$ 19,257,430$ 3,958,805$ Year ended June 30, 2023 See Notes to Required Supplementary Information. 100 Page 309 of 1128 CITY OF PALM DESERT Notes To Required Supplementary Information June 30, 2023 BUDGETS AND BUDGETARY ACCOUNTING The City used the following procedures in establishing the budgetary data reported in the financial statements: 1. Before the beginning of the fiscal year, the City Manager submits to the City Council a proposed budget for the year commencing the following July 1. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is subsequently adopted through passage of a resolution. 4. Expenditures for the General Fund cannot exceed amounts budgeted at the departmental level, which is the legal level of control. For other funds, expenditures cannot exceed the total amount budgeted for each fund, which is the legal level of control. The City Manager is authorized to transfer appropriations (without council approval) between an object of a General Fund Department and authority to adjust intra-and outer departmental budgeted line items, as well as inter-fund transfers, provided such adjustments do not exceed the total approved budget. The City Council approves all other changes. Annual appropriation amounts lapse at year-end. 5. Encumbrances and continuing appropriations are rebudgeted as of July 1, by Council action. 6. Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for all governmental funds except for certain special revenue funds and capital projects funds, which adopt project length budgets and debt service funds that are not budgeted as effective budgetary control is achieved through debt indenture provisions. The following funds did not have legally adopted budgets during the current fiscal year: Other Governmental Funds Library Assessment District No. 94-3 Merano Silver Spur Ranch Highlands Undergrounding CFD University Special Assessment Assessment 29 University Park National Opioid Settlement 101 Page 310 of 1128 OTHER GOVERNMENTAL FUNDS COMBINING STATEMENTS 102 Page 311 of 1128 CITY OF PALM DESERT Combining Balance Sheet Other Governmental Funds Assets: Pooled cash and investments 51,964,406$ 33,652,432$ 120,692$ 85,737,530$ Receivables: Accounts 902,488 - - 902,488 Assessments 4,481 - 1,076,523 1,081,004 Loans 1,221,675 - - 1,221,675 Interest 49,251 - - 49,251 Prepaid costs 16,968 17,119 - 34,087 Deposits - 20,000 - 20,000 Due from other governments 1,477,045 - 4,375 1,481,420 Advances to other funds - 3,179,888 - 3,179,888 Inventories 17,570 - - 17,570 Total Assets 55,653,884$ 36,869,439$ 1,201,590$ 93,724,913$ Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable 2,637,568$ 2,585,705$ -$ 5,223,273$ Accrued liabilities 14,520 - - 14,520 Unearned revenues 280,834 251,273 - 532,107 Deposits payable 3,780 - - 3,780 Due to other funds 1,136,962 - - 1,136,962 Advances from other funds 956,000 - - 956,000 Total Liabilities 5,029,664 2,836,978 - 7,866,642 Deferred Inflows or Resources: Unavailable revenues 329,475 - 1,076,523 1,405,998 Total Deferred Inflows of Resources 329,475 - 1,076,523 1,405,998 Fund Balances: Nonspendable: Inventory 17,570 - - 17,570 Prepaid costs and deposits 16,968 17,119 - 34,087 Restricted for: Public safety 2,058,431 - - 2,058,431 Capital projects - 190,103 - 190,103 Debt service - - 125,067 125,067 Street related purposes 27,850,479 - - 27,850,479 Low income housing 4,510,728 - - 4,510,728 Public facilities 3,978,182 - - 3,978,182 Special programs 8,169,630 1,302,639 - 9,472,269 Committed to: Aquatic center 1,871,454 - - 1,871,454 Energy loan program 1,821,303 - - 1,821,303 Assigned to: Capital projects - 14,734,608 - 14,734,608 Property acquisition - 420,387 - 420,387 Public facilities - 14,804,510 - 14,804,510 Special programs - 687,519 - 687,519 Street related purposes - 1,875,576 - 1,875,576 Total Fund Balances 50,294,745 34,032,461 125,067 84,452,273 Total Liabilities, Deferred Inflows of Resources and Fund Balances 55,653,884$ 36,869,439$ 1,201,590$ 93,724,913$ June 30, 2023 Special Revenue Funds Total Other Governmental Funds Debt Service Fund Capital Projects Funds 103 Page 312 of 1128 CITY OF PALM DESERT Combining Statement of Revenues, Expenditures And Changes in Fund Balances Other Governmental Funds Year Ended June 30, 2023 Revenues: Taxes 6,796,234$ -$ -$ 6,796,234$ Special assessments collected 1,351,625 - 128,760 1,480,385 Licenses and permits - 571,716 - 571,716 Intergovernmental revenues 3,605,743 32,575 - 3,638,318 Charges for services 1,136,741 2,587,864 - 3,724,605 Investment earnings 1,424,259 1,010,906 2,725 2,437,890 Rental income - 82,981 - 82,981 Fines and forfeitures 7,385 - - 7,385 Miscellaneous 30,027 214,790 - 244,817 Total Revenues 14,352,014 4,500,832 131,485 18,984,331 Expenditures: Current: General government 828,827 1,184,038 1,814 2,014,679 Public safety 384,731 - - 384,731 Parks, recreation and culture 2,221,231 9,925,404 - 12,146,635 Public works 6,941,412 642,566 - 7,583,978 Housing and redevelopment 1,016,156 - - 1,016,156 Capital outlay 2,747,563 3,527,619 - 6,275,182 Debt service: Principal retirement 86,000 - 50,000 136,000 Interest and fiscal charges 75,330 - 54,310 129,640 Total Expenditures 14,301,250 15,279,627 106,124 29,687,001 Excess of Revenues Over (Under) Expenditures 50,764 (10,778,795) 25,361 (10,702,670) Other Financing Sources (Uses) Transfers in 2,515,384 15,352,358 - 17,867,742 Transfers out (2,407,925) (70,806) - (2,478,731) Total Other Financing Sources (Uses)107,459 15,281,552 - 15,389,011 Net Change in Fund Balances 158,223 4,502,757 25,361 4,686,341 Fund Balances, Beginning of Year 50,136,522 29,529,704 99,706 79,765,932 Fund Balances, End of Year 50,294,745$ 34,032,461$ 125,067$ 84,452,273$ Debt Service Fund Total Other Governmental Funds Special Revenue Funds Capital Projects Funds 104 Page 313 of 1128 OTHER GOVERNMENTAL FUNDS - SPECIAL REVENUE Special Revenue Funds are used to account for proceeds of specific revenue sources other than expendable trust that are legally restricted to expenditures for specific purposes. Traffic Safety Fund – Traffic and court fines are collected in these funds. A transfer from this Fund to the General Fund is made at the end of the fiscal year by council action to be applied toward the eligible expenditures permitted by law. Gas Tax Fund – Portions of the tax rate per gallon levied by the State of California on all gasoline purchases are allocated to cities throughout the State. These funds are restricted to expenditure for transit and street-related purposes. Measure A – This fund is used to account for the half-cent sales tax approved by the voters of Riverside County in 1988. Funds are restricted for local street and road expenditures only. Housing Mitigation Fee Fund – This fund is used to account for fees collected from construction of commercial and office buildings for low and moderate income mitigation purposes to be used strictly for projects and programs that benefit the low and moderate income households. Community Development Block Grant Fund – This fund is used to account for the receipts and expenditures of CDBG funds received from the U.S. Department of Housing and Urban Development. Child Care Program Fund – This fund is used to collect funds from developers for the purpose of providing child care programs. Public Safety Police Grants Fund – This fund is used to account for grants received from the U.S. Department of Justice under the Local Law Enforcement Block Grant Program for the purpose of purchasing equipment related to public safety. New Construction Tax Fund – This fund is used to account for tax collected upon application to the City for a building permit from every person/entity for the construction of any new building, addition or trailer space in the city according to a fee schedule. Its use is restricted for the acquisition and development of public facilities such as parks, playgrounds and public structures. Planned Drainage Fund – This fund is used to account for off-site drainage fees based on an established fee schedule collected prior to approval of the final map in the case of land being subdivided or prior to the issuance of a building permit in the case of construction or improvement of subdivided land. Parks and Recreational Facilities Fund – This fund is used to account for fees collected for residential and subdivision developments collected either at the time grading permits are paid or prior to the approval of the final map. Its use is restricted for expenditures related to park development, maintenance and equipment. Traffic Signals Fund – This fund is used to account for fees collected for residential, commercial and industrial developments either at the time grading permits are paid or prior to the approval of the final map. Its use is restricted for expenditures related to the acquisition and maintenance of traffic signals. Fire Facilities Restoration Fund – This fund is used to collect funds from developers for the purpose of construction, restoration and purchase of equipment for fire stations within the City. Recycling Fund – This fund is used to account for resources resulting from lower landfill tipping fees which have been reduced to zero in 2013, and State grant funds. Funds will be utilized for purposes of promoting recycling and recycling related activities. 105 Page 314 of 1128 OTHER GOVERNMENTAL FUNDS - SPECIAL REVENUE (CONTINUED) Energy Independence Loan Fund – This fund is used to provide funding for the AB811 Energy Loans and collect assessments from those AB811 loans through property tax collections. The assessments collected will be used to service debt issued and to provide additional funding for the AB811 loans. Air Quality Management Fund – This fund accounts for receipts from South Coast Air Quality Management District, sixty percent of which is disbursed to the Coachella Valley Association of Governments. Aquatic Center Fund – This fund is used to account for revenues and expenditures for the City’s aquatic facility. Cannabis Compliance Fund – This fund is used to account for revenues and expenditures for the City’s cannabis compliance activity. El Paseo Assessment District Fund – This fund is used to collect assessments on all business establishments located within the boundaries set for the El Paseo Parking and business improvement area based on a fee schedule established for the various types of businesses. Proceeds from all charges are used for the promotion of business activities in the area. Various Landscape and Lighting District Funds – These funds are used to account for expenditures and receipts of property taxes and service fees levied to the property owners in the various landscaping and lighting districts, which were formed to provide landscaping and street lighting maintenance. Individual landscaping and lighting funds are set up for Districts No 1 through 17. Affordable Housing Fund – This fund is used to account for the management and operation of the affordable housing portfolio. Permanent Local Housing Allocation Grant Fund – This fund provides a permanent source of funding to cities and counties to help meet the need for affordable housing and to increase the supply of affordable housing units. Opioid Settlement Funds – This fund is used to account for the receipts and expenditures related to the Nationwide Class Action Opioid Settlement intended to be used to address the nation’s continuing opioid crisis. 106 Page 315 of 1128 CITY OF PALM DESERT Combining Balance Sheet Other Special Revenue Funds Assets: Pooled cash and investments 1,806$ 4,673,470$ 21,719,622$ 3,158,997$ Receivables: Accounts --- - Assessments --- - Loans --- - Interest --- - Allowance for interest on Successor Agency --- - Prepaid costs --- - Due from other governments 3,904 337,925 1,004,357 - Inventories --- - Total Assets 5,710$ 5,011,395$ 22,723,979$ 3,158,997$ Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable -$187,892$ 844,705$ 3,054$ Accrued liabilities --- - Unearned revenues --- - Deposits payable --- - Due to other funds --- - Advances from other funds --- - Total Liabilities - 187,892 844,705 3,054 Deferred Inflows of Resources: Unavailable revenues --280,889 - Total Deferred Inflows of Resources --280,889 - Fund Balances: Nonspendable: Inventory --- - Prepaid costs --- - Restricted for: Public safety --- - Street related purposes 5,710 4,823,503 21,598,385 - Low income housing --- 3,155,943 Public facilities --- - Special programs --- - Committed to: Aquatic center --- - Energy loan program --- - Assigned to: Community development projects --- - Total Fund Balances 5,710 4,823,503 21,598,385 3,155,943 Total Liabilities, Deferred Inflows of Resources and Fund Balances 5,710$ 5,011,395$ 22,723,979$ 3,158,997$ Traffic Safety Gas Tax Measure A Housing Mitigation Fee June 30, 2023 107 Page 316 of 1128 CITY OF PALM DESERT Combining Balance Sheet Other Special Revenue Funds Assets: Pooled cash and investments Receivables: Accounts Assessments Loans Interest Allowance for interest on Successor Agency Prepaid costs Due from other governments Inventories Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other funds Advances from other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Nonspendable: Inventory Prepaid costs Restricted for: Public safety Street related purposes Low income housing Public facilities Special programs Committed to: Aquatic center Energy loan program Assigned to: Community development projects Total Fund Balances Total Liabilities, Deferred Inflows of Resources and Fund Balances June 30, 2023 (CONTINUED) 7,998$ 769,068$ 207,054$ 1,578,845$ - - - - - - - - - - - - - - - - - - - - - - - - 93,471 - - - - - - - 101,469$ 769,068$ 207,054$ 1,578,845$ 62,307$ -$ 109,800$ -$ - - - - - - 76,180 - - - - - - - - - - - - - 62,307 - 185,980 - - - - - - - - - - - - - - - - - - - 21,074 - - - - - - - - - - 769,068 - 1,578,845 39,162 - - - - - - - - - - - - - - - 39,162 769,068 21,074 1,578,845 101,469$ 769,068$ 207,054$ 1,578,845$ Public Safety Police Grants New Construction Tax Community Development Block Grant Child Care Program 108 Page 317 of 1128 CITY OF PALM DESERT Combining Balance Sheet Other Special Revenue Funds Assets: Pooled cash and investments Receivables: Accounts Assessments Loans Interest Allowance for interest on Successor Agency Prepaid costs Due from other governments Inventories Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other funds Advances from other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Nonspendable: Inventory Prepaid costs Restricted for: Public safety Street related purposes Low income housing Public facilities Special programs Committed to: Aquatic center Energy loan program Assigned to: Community development projects Total Fund Balances Total Liabilities, Deferred Inflows of Resources and Fund Balances June 30, 2023 897,347$ 1,838,223$ 525,534$ 1,661,964$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 897,347$ 1,838,223$ 525,534$ 1,661,964$ -$ 207,954$ -$ 81,264$ - - - - - - - - - - - - - - - - - - - - - 207,954 - 81,264 - - - - - - - - - - - - - - - - - - - 1,580,700 897,347 - 525,534 - - - - - - 1,630,269 - - - - - - - - - - - - - - - - - - 897,347 1,630,269 525,534 1,580,700 897,347$ 1,838,223$ 525,534$ 1,661,964$ Fire Facilities Restoration Planned Drainage Parks and Recreational Facilities Traffic Signals 109 Page 318 of 1128 CITY OF PALM DESERT Combining Balance Sheet Other Special Revenue Funds Assets: Pooled cash and investments Receivables: Accounts Assessments Loans Interest Allowance for interest on Successor Agency Prepaid costs Due from other governments Inventories Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other funds Advances from other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Nonspendable: Inventory Prepaid costs Restricted for: Public safety Street related purposes Low income housing Public facilities Special programs Committed to: Aquatic center Energy loan program Assigned to: Community development projects Total Fund Balances Total Liabilities, Deferred Inflows of Resources and Fund Balances June 30, 2023 (CONTINUED) 3,221,737$ 1,552,717$ 41,076$ 2,094,235$ 65,691 -- 666,790 -4,481 - - -1,221,675 - - -49,251 - - --- - 1,050 4,000 - 11,918 --16,972 - --- 17,570 3,288,478$ 2,832,124$ 58,048$ 2,790,513$ 30,672$ 2,235$ 25,759$ 889,571$ --- - 103,613 -- - --- - --- - -956,000 - - 134,285 958,235 25,759 889,571 -48,586 - - -48,586 - - --- 17,570 1,050 4,000 - 11,918 --- - --- - --- - --- - 3,153,143 -32,289 - --- 1,871,454 -1,821,303 - - --- - 3,154,193 1,825,303 32,289 1,900,942 3,288,478$ 2,832,124$ 58,048$ 2,790,513$ Recycling Energy Independence Loan Air Quality Management Aquatic Center 110 Page 319 of 1128 CITY OF PALM DESERT Combining Balance Sheet Other Special Revenue Funds Assets: Pooled cash and investments Receivables: Accounts Assessments Loans Interest Allowance for interest on Successor Agency Prepaid costs Due from other governments Inventories Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other funds Advances from other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Nonspendable: Inventory Prepaid costs Restricted for: Public safety Street related purposes Low income housing Public facilities Special programs Committed to: Aquatic center Energy loan program Assigned to: Community development projects Total Fund Balances Total Liabilities, Deferred Inflows of Resources and Fund Balances June 30, 2023 1,433,948$ 81,840$ 5,026,091$ 1,364,171$ 160,963 9,044 - - - - - - - - - - - - - - - - - - - - - - - - 20,416 - - - - - 1,594,911$ 90,884$ 5,046,507$ 1,364,171$ -$ 28,669$ 163,686$ -$ - - - 14,520 - - - - 3,780 - - - 1,136,962 - - - - - - - 1,140,742 28,669 163,686 14,520 - - - - - - - - - - - - - - - - 454,169 - - - - - - - - - - 1,349,651 - - - - - 62,215 4,882,821 - - - - - - - - - - - - - 454,169 62,215 4,882,821 1,349,651 1,594,911$ 90,884$ 5,046,507$ 1,364,171$ El Paseo Assessment District Landscape and Lighting District Nos. 1 - 17 Affordable Housing Cannabis Compliance 111 Page 320 of 1128 CITY OF PALM DESERT Combining Balance Sheet Other Special Revenue Funds Assets: Pooled cash and investments Receivables: Accounts Assessments Loans Interest Allowance for interest on Successor Agency Prepaid costs Due from other governments Inventories Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other funds Advances from other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Nonspendable: Inventory Prepaid costs Restricted for: Public safety Street related purposes Low income housing Public facilities Special programs Committed to: Aquatic center Energy loan program Assigned to: Community development projects Total Fund Balances Total Liabilities, Deferred Inflows of Resources and Fund Balances June 30, 2023 5,134$ 103,529$ 51,964,406$ -- 902,488 -- 4,481 -- 1,221,675 -- 49,251 -- - -- 16,968 -- 1,477,045 -- 17,570 5,134$ 103,529$ 55,653,884$ -$-$ 2,637,568$ -- 14,520 -101,041 280,834 --3,780 --1,136,962 --956,000 - 101,041 5,029,664 -- 329,475 -- 329,475 -- 17,570 -- 16,968 -2,488 2,058,431 --27,850,479 5,134 - 4,510,728 -- 3,978,182 -- 8,169,630 -- 1,871,454 -- 1,821,303 -- - 5,134 2,488 50,294,745 5,134$ 103,529$ 55,653,884$ Total Other Special Revenue Funds National Opioid Settlement Permanent Local Housing Allocation Grant 112 Page 321 of 1128 CITY OF PALM DESERT Combining Statement of Revenues, Expenditures and Changes in Fund Balances Other Special Revenue Funds Year Ended June 30, 2023 Revenues: Taxes -$-$3,562,513$ 55,521$ Special assessments collected ---- Intergovernmental revenues -2,421,662 97,960 - Charges for services ---- Investment earnings 87 86,076 738,084 126,075 Fines and forfeitures 7,385 --- Miscellaneous ---30,000 Total Revenues 7,472 2,507,738 4,398,557 211,596 Expenditures: Current: General government ---- Public safety ---- Parks, recreation and culture ---- Public works -2,853,403 3,171,819 - Housing and redevelopment --- 602,802 Capital outlay -- 1,446,804 - Debt service: Principal retirement ---- Interest and fiscal charges ---- Total Expenditures -2,853,403 4,618,623 602,802 Excess of Revenues Over (Under) Expenditures 7,472 (345,665) (220,066) (391,206) Other Financing Sources (Uses) Transfers in ---- Transfers out (4,700) --- Total Other Financing Sources (Uses) (4,700) --- Net Change in Fund Balances 2,772 (345,665) (220,066) (391,206) Fund Balances, Beginning of Year 2,938 5,169,168 21,818,451 3,547,149 Fund Balances, End of Year 5,710$ 4,823,503$ 21,598,385$ 3,155,943$ Traffic Safety Gas Tax Measure A Housing Mitigation Fee 113 Page 322 of 1128 CITY OF PALM DESERT Combining Statement of Revenues, Expenditures and Changes in Fund Balances Other Special Revenue Funds Year Ended June 30, 2023 Revenues: Taxes Special assessments collected Intergovernmental revenues Charges for services Investment earnings Fines and forfeitures Miscellaneous Total Revenues Expenditures: Current: General government Public safety Parks, recreation and culture Public works Housing and redevelopment Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year (CONTINUED) -$ 71,412$ -$ 518,442$ - - - - 352,646 - 382,311 - - - - - - 23,793 5,027 52,485 - - - - - - - - 352,646 95,205 387,338 570,927 186,870 - - - - - 382,311 - - - - - - - - - - - - - - - - 444,430 - - - - - - - - 186,870 - 382,311 444,430 165,776 95,205 5,027 126,497 - - - - - - - - - - - - 165,776 95,205 5,027 126,497 (126,614) 673,863 16,047 1,452,348 39,162$ 769,068$ 21,074$ 1,578,845$ Public Safety Police Grants New Construction Tax Community Development Block Grant Child Care Program 114 Page 323 of 1128 CITY OF PALM DESERT Combining Statement of Revenues, Expenditures and Changes in Fund Balances Other Special Revenue Funds Year Ended June 30, 2023 Revenues: Taxes Special assessments collected Intergovernmental revenues Charges for services Investment earnings Fines and forfeitures Miscellaneous Total Revenues Expenditures: Current: General government Public safety Parks, recreation and culture Public works Housing and redevelopment Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year 132,022$ 70,597$ 70,931$ 297,648$ ---- ---- ---- 27,188 59,795 15,853 49,188 ---- ---- 159,210 130,392 86,784 346,836 ---- 2,400 --- ---- ---- ---- -208,754 - 134,222 ---- ---- 2,400 208,754 -134,222 156,810 (78,362) 86,784 212,614 ---- ---- ---- 156,810 (78,362) 86,784 212,614 740,537 1,708,631 438,750 1,368,086 897,347$ 1,630,269$ 525,534$ 1,580,700$ Planned Drainage Parks and Recreational Facilities Traffic Signals Fire Facilities Restoration 115 Page 324 of 1128 CITY OF PALM DESERT Combining Statement of Revenues, Expenditures and Changes in Fund Balances Other Special Revenue Funds Year Ended June 30, 2023 Revenues: Taxes Special assessments collected Intergovernmental revenues Charges for services Investment earnings Fines and forfeitures Miscellaneous Total Revenues Expenditures: Current: General government Public safety Parks, recreation and culture Public works Housing and redevelopment Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year (CONTINUED) -$ -$ -$ -$ - 71,522 - - - - 84,901 - 412,066 - - 724,675 103,946 28,740 1,302 17,600 - - - - 27 - - - 516,039 100,262 86,203 742,275 289,792 5,315 64,689 - - - - - - - - 2,221,231 - - - - - - - - - - 4,061 506,656 - 86,000 - - - 75,330 - - 289,792 166,645 68,750 2,727,887 226,247 (66,383) 17,453 (1,985,612) - - - 1,890,294 - - - - - - - 1,890,294 226,247 (66,383) 17,453 (95,318) 2,927,946 1,891,686 14,836 1,996,260 3,154,193$ 1,825,303$ 32,289$ 1,900,942$ Air Quality Management Aquatic Center Recycling Energy Independence Loan 116 Page 325 of 1128 CITY OF PALM DESERT Combining Statement of Revenues, Expenditures and Changes in Fund Balances Other Special Revenue Funds Year Ended June 30, 2023 Revenues: Taxes Special assessments collected Intergovernmental revenues Charges for services Investment earnings Fines and forfeitures Miscellaneous Total Revenues Expenditures: Current: General government Public safety Parks, recreation and culture Public works Housing and redevelopment Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year 2,017,148$ -$ -$ -$ - 271,431 1,008,672 - - - - - - - - - - 1,460 79,938 - - - - - - - - - 2,017,148 272,891 1,088,610 - - 282,161 - - 20 - - - - - - - - - 916,190 - - - - 413,354 - - - 2,636 - - - - - - - - 20 282,161 916,190 415,990 2,017,128 (9,270) 172,420 (415,990) - - 209,100 415,990 (2,136,962) - - - (2,136,962) - 209,100 415,990 (119,834) (9,270) 381,520 - 574,003 71,485 4,501,301 1,349,651 454,169$ 62,215$ 4,882,821$ 1,349,651$ Cannabis Compliance El Paseo Assessment District Landscape and Lighting District Nos. 1 - 17 Affordable Housing 117 Page 326 of 1128 CITY OF PALM DESERT Combining Statement of Revenues, Expenditures and Changes in Fund Balances Other Special Revenue Funds Year Ended June 30, 2023 Revenues: Taxes Special assessments collected Intergovernmental revenues Charges for services Investment earnings Fines and forfeitures Miscellaneous Total Revenues Expenditures: Current: General government Public safety Parks, recreation and culture Public works Housing and redevelopment Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year -$ -$ 6,796,234$ - - 1,351,625 266,263 - 3,605,743 - - 1,136,741 5,134 2,488 1,424,259 - - 7,385 - - 30,027 271,397 2,488 14,352,014 - - 828,827 - - 384,731 - - 2,221,231 - - 6,941,412 - - 1,016,156 - - 2,747,563 - - 86,000 - - 75,330 - - 14,301,250 271,397 2,488 50,764 - - 2,515,384 (266,263) - (2,407,925) (266,263) - 107,459 5,134 2,488 158,223 - - 50,136,522 5,134$ 2,488$ 50,294,745$ Total Other Special Revenue Funds National Opioid Settlement Permanent Local Housing Allocation Grant 118 Page 327 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Traffic Safety Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 2,938$ 2,938$ 2,938$ -$ Resources (Inflows): Investment earnings --87 87 Fines and forfeitures 4,700 4,700 7,385 2,685 Amounts Available for Appropriations 7,638 7,638 10,410 2,772 Charges to Appropriation (Outflow): Transfers out 4,700 4,700 4,700 - Total Charges to Appropriations 4,700 4,700 4,700 - Budgetary Fund Balance, June 30 2,938$ 2,938$ 5,710$ 2,772$ 119 Page 328 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Gas Tax Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 5,169,168$ 5,169,168$ 5,169,168$ -$ Resources (Inflows): Intergovernmental 2,802,451 2,802,451 2,421,662 (380,789) Investment earnings 13,000 13,000 86,076 73,076 Amounts Available for Appropriations 7,984,619 7,984,619 7,676,906 (307,713) Charges to Appropriation (Outflow): Public works 4,700,000 7,353,968 2,853,403 4,500,565 Total Charges to Appropriations 4,700,000 7,353,968 2,853,403 4,500,565 Budgetary Fund Balance, June 30 3,284,619$ 630,651$ 4,823,503$ 4,192,852$ 120 Page 329 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Measure A Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 21,818,451$ 21,818,451$ 21,818,451$ -$ Resources (Inflows): Taxes 3,199,000 3,199,000 3,562,513 363,513 Intergovernmental 1,663,000 1,663,000 97,960 (1,565,040) Investment earnings 100,000 100,000 738,084 638,084 Amounts Available for Appropriations 26,780,451 26,780,451 26,217,008 (563,443) Charges to Appropriation (Outflow): Public works 300,000 4,521,524 3,171,819 1,349,705 Capital outlay 7,878,000 10,666,684 1,446,804 9,219,880 Total Charges to Appropriations 8,178,000 15,188,207 4,618,623 10,569,584 Budgetary Fund Balance, June 30 18,602,451$ 11,592,244$ 21,598,385$ 10,006,141$ Year ended June 30, 2023 121 Page 330 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Housing Mitigation Fee Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 3,547,149$ 3,547,149$ 3,547,149$ -$ Resources (Inflows): Taxes 64,000 64,000 55,521 (8,479) Investment earnings 8,000 8,000 126,075 118,075 Miscellaneous --30,000 30,000 Amounts Available for Appropriations 3,619,149 3,619,149 3,758,745 139,596 Charges to Appropriation (Outflow): Housing and redevelopment 404,500 404,500 602,802 (198,302) Total Charges to Appropriations 404,500 404,500 602,802 (198,302) Budgetary Fund Balance, June 30 3,214,649$ 3,214,649$ 3,155,943$ (58,706)$ 122 Page 331 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Community Development Block Grant Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 (126,614)$ (126,614)$ (126,614)$ -$ Resources (Inflows): Intergovernmental 418,663 418,663 352,646 (66,017) Investment earnings 100 100 - (100) Amounts Available for Appropriations 292,149 292,149 226,032 (66,117) Charges to Appropriation (Outflow): General government 418,663 822,853 186,870 635,983 Total Charges to Appropriations 418,663 822,853 186,870 635,983 Budgetary Fund Balance, June 30 (126,514)$ (530,704)$ 39,162$ 569,866$ 123 Page 332 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Child Care Program Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 673,863$ 673,863$ 673,863$ -$ Resources (Inflows): Taxes 90,000 90,000 71,412 (18,588) Investment earnings 4,000 4,000 23,793 19,793 Amounts Available for Appropriations 767,863 767,863 769,068 1,205 Charges to Appropriation (Outflow): Capital outlay - 684,000 - 684,000 Total Charges to Appropriations - 684,000 - 684,000 Budgetary Fund Balance, June 30 767,863$ 83,863$ 769,068$ 685,205$ 124 Page 333 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Public Safety Police Grants Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 16,047$ 16,047$ 16,047$ -$ Resources (Inflows): Intergovernmental 200,000 200,000 382,311 182,311 Investment earnings 500 500 5,027 4,527 Amounts Available for Appropriations 216,547 216,547 403,385 186,838 Charges to Appropriation (Outflow): Public safety 200,000 200,000 382,311 (182,311) Total Charges to Appropriations 200,000 200,000 382,311 (182,311) Budgetary Fund Balance, June 30 16,547$ 16,547$ 21,074$ 4,527$ 125 Page 334 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule New Construction Tax Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,452,348$ 1,452,348$ 1,452,348$ -$ Resources (Inflows): Taxes 414,200 414,200 518,442 104,242 Intergovernmental 3,724,907 3,724,907 - (3,724,907) Investment earnings 8,000 8,000 52,485 44,485 Amounts Available for Appropriations 5,599,455 5,599,455 2,023,275 (3,576,180) Charges to Appropriation (Outflow): Capital outlay 1,500,000 4,212,082 444,430 3,767,652 Total Charges to Appropriations 1,500,000 4,212,082 444,430 3,767,652 Budgetary Fund Balance, June 30 4,099,455$ 1,387,373$ 1,578,845$ 191,472$ 126 Page 335 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Planned Drainage Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 740,537$ 740,537$ 740,537$ -$ Resources (Inflows): Taxes 70,000 70,000 132,022 62,022 Investment earnings 2,500 2,500 27,188 24,688 Amounts Available for Appropriations 813,037 813,037 899,747 86,710 Charges to Appropriation (Outflow): Public safety 239,262 239,262 2,400 236,862 Total Charges to Appropriations 239,262 239,262 2,400 236,862 Budgetary Fund Balance, June 30 573,775$ 573,775$ 897,347$ 323,572$ 127 Page 336 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Parks and Recreational Facilities Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,708,631$ 1,708,631$ 1,708,631$ -$ Resources (Inflows): Taxes 175,000 175,000 70,597 (104,403) Investment earnings 3,000 3,000 59,795 56,795 Amounts Available for Appropriations 1,886,631 1,886,631 1,839,023 (47,608) Charges to Appropriation (Outflow): Capital outlay - 1,258,400 208,754 1,049,646 Total Charges to Appropriations - 1,258,400 208,754 1,049,646 Budgetary Fund Balance, June 30 1,886,631$ 628,231$ 1,630,269$ 1,002,038$ 128 Page 337 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Traffic Signals Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 438,750$ 438,750$ 438,750$ -$ Resources (Inflows): Taxes 20,000 20,000 70,931 50,931 Investment earnings 500 500 15,853 15,353 Amounts Available for Appropriations 459,250 459,250 525,534 66,284 Charges to Appropriation (Outflow): Capital outlay - 225,000 - 225,000 Total Charges to Appropriations - 225,000 - 225,000 Budgetary Fund Balance, June 30 459,250$ 234,250$ 525,534$ 291,284$ 129 Page 338 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Fire Facilities Restoration Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,368,086$ 1,368,086$ 1,368,086$ -$ Resources (Inflows): Taxes 116,100 116,100 297,648 181,548 Investment earnings 7,000 7,000 49,188 42,188 Amounts Available for Appropriations 1,491,186 1,491,186 1,714,922 223,736 Charges to Appropriation (Outflow): Capital outlay - 1,223,471 134,222 1,089,249 Total Charges to Appropriations - 1,223,471 134,222 1,089,249 Budgetary Fund Balance, June 30 1,491,186$ 267,715$ 1,580,700$ 1,312,985$ 130 Page 339 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Recycling Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 2,927,946$ 2,927,946$ 2,927,946$ -$ Resources (Inflows): Intergovernmental 50,000 50,000 - (50,000) Charges for services 430,000 430,000 412,066 (17,934) Investment earnings 15,000 15,000 103,946 88,946 Miscellaneous - - 27 27 Amounts Available for Appropriations 3,422,946 3,422,946 3,443,985 21,039 Charges to Appropriation (Outflow): General government 633,000 699,050 289,792 409,258 Total Charges to Appropriations 633,000 699,050 289,792 409,258 Budgetary Fund Balance, June 30 2,789,946$ 2,723,896$ 3,154,193$ 430,297$ 131 Page 340 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Energy Independence Loan Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,891,686$ 1,891,686$ 1,891,686$ -$ Resources (Inflows): Assessments 300,000 300,000 71,522 (228,478) Investment earnings 5,000 5,000 28,740 23,740 Amounts Available for Appropriations 2,196,686 2,196,686 1,991,948 (204,738) Charges to Appropriation (Outflow): General government 15,000 15,000 5,315 9,685 Debt service: Principal retirement 130,000 130,000 86,000 44,000 Interest and fiscal charges 83,480 83,480 75,330 8,150 Total Charges to Appropriations 228,480 228,480 166,645 61,835 Budgetary Fund Balance, June 30 1,968,206$ 1,968,206$ 1,825,303$ (142,903)$ 132 Page 341 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Air Quality Management Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 14,836$ 14,836$ 14,836$ -$ Resources (Inflows): Intergovernmental 73,400 73,400 84,901 11,501 Investment earnings 50 50 1,302 1,252 Amounts Available for Appropriations 88,286 88,286 101,039 12,753 Charges to Appropriation (Outflow): General government 63,100 63,100 64,689 (1,589) Capital outlay - - 4,061 (4,061) Total Charges to Appropriations 63,100 63,100 68,750 (5,650) Budgetary Fund Balance, June 30 25,186$ 25,186$ 32,289$ 7,103$ 133 Page 342 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Aquatic Center Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,996,260$ 1,996,260$ 1,996,260$ -$ Resources (Inflows): Charges for services 811,786 811,786 724,675 (87,111) Investment earnings 3,000 3,000 17,600 14,600 Transfers in 1,805,294 1,920,294 1,890,294 (30,000) Amounts Available for Appropriations 4,616,340 4,731,340 4,628,829 (102,511) Charges to Appropriation (Outflow): Parks, recreation and culture 2,349,080 2,349,080 2,221,231 127,849 Capital outlay 271,000 543,517 506,656 36,861 Total Charges to Appropriations 2,620,080 2,892,597 2,727,887 164,710 Budgetary Fund Balance, June 30 1,996,260$ 1,838,743$ 1,900,942$ 62,199$ 134 Page 343 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Cannabis Compliance Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 574,003$ 574,003$ 574,003$ -$ Resources (Inflows): Taxes 3,190,000 2,395,000 2,017,148 (377,852) Amounts Available for Appropriations 3,764,003 2,969,003 2,591,151 (377,852) Charges to Appropriation (Outflow): Public safety - - 20 (20) Transfers out 3,180,000 3,180,000 2,136,962 1,043,038 Total Charges to Appropriations 3,180,000 3,180,000 2,136,982 1,043,018 Budgetary Fund Balance, June 30 584,003$ (210,997)$ 454,169$ 665,166$ 135 Page 344 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule El Paseo Assessment District Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 71,485$ 71,485$ 71,485$ -$ Resources (Inflows): Special assessments collected 250,000 250,000 271,431 21,431 Investment earnings --1,460 1,460 Amounts Available for Appropriations 321,485 321,485 344,376 22,891 Charges to Appropriation (Outflow): General government 250,000 291,000 282,161 8,839 Total Charges to Appropriations 250,000 291,000 282,161 8,839 Budgetary Fund Balance, June 30 71,485$ 30,485$ 62,215$ 31,730$ 136 Page 345 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Landscape and Lighting Districts Nos. 1 - 17 Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 4,501,301$ 4,501,301$ 4,501,301$ -$ Resources (Inflows): Special assessments collected 1,035,784 1,035,784 1,008,672 (27,112) Investment earnings 10,000 10,000 79,938 69,938 Transfers in 135,000 209,100 209,100 - Amounts Available for Appropriations 5,682,085 5,756,185 5,799,011 42,826 Charges to Appropriation (Outflow): Public works 1,791,480 1,802,000 916,190 885,810 Total Charges to Appropriations 1,791,480 1,802,000 916,190 885,810 Budgetary Fund Balance, June 30 3,890,605$ 3,954,185$ 4,882,821$ 928,636$ 137 Page 346 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Affordable Housing Fund Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,349,651$ 1,349,651$ 1,349,651$ -$ Resources (Inflows): Transfers in 446,400 439,500 415,990 (23,510) Amounts Available for Appropriations 1,796,051 1,789,151 1,765,641 (23,510) Charges to Appropriation (Outflow): Housing and redevelopment 445,400 436,500 413,354 23,146 Capital outlay 1,000 3,000 2,636 364 Total Charges to Appropriations 446,400 439,500 415,990 23,510 Budgetary Fund Balance, June 30 1,349,651$ 1,349,651$ 1,349,651$ -$ 138 Page 347 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Permanent Local Housing Allocation Grant Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 -$-$-$ -$ Resources (Inflows): Intergovernmental -- 266,263 266,263 Use of money and property --5,134 5,134 Amounts Available for Appropriation -- 271,397 271,397 Charges to Appropriation (Outflow): Transfers out -266,263 266,263 - Total Charges to Appropriations -266,263 266,263 - Budgetary Fund Balance, June 30 -$(266,263)$ 5,134$ 271,397$ 139 Page 348 of 1128 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN 140 Page 349 of 1128 OTHER GOVERNMENTAL FUNDS - CAPITAL PROJECTS Capital Projects Funds are used to account for the acquisition and construction of major capital facilities, except for those financed by certain Special Revenue and Enterprise funds. Capital Projects Reserve – This fund is used to account for resources and expenditures for capital improvement projects that are related to the acquisition and development of public facilities, infrastructure and equipment. Drainage Facilities Fund – This fund is used to account for resources and expenditures for planned capital improvement projects that are under the Master Drainage Plan. Economic Development – This fund is used to account for façade enhancement projects for Palm Desert businesses utilizing funds from the sales of certain City-owned properties. Parks and Recreational Facilities Fund – This fund is used to account for resources and expenditures for capital improvement projects that are related to park development, maintenance and equipment. Art in Public Places Fund – This fund is used to account for fees collected from residential, commercial and public facilities development except for street and drainage projects. Its use is restricted for acquisition, installation, improvement and maintenance of artwork to be displayed in the City, the administration of the program and community public art education programs. Signalization Fund – This fund is used to account for resources and expenditures for capital improvement projects that are related to the acquisition and maintenance of traffic signals. Capital Golf Fund – This fund is used to offset the cost of capital improvements, equipment purchases, perimeter maintenance, pay off assessments and other nonrecurring costs that will arise as a result of Desert Willow Golf Course Resort. Funding sources for the Golf Course Maintenance Fund are collections from the IROC and Standard Vacation Ownership, Inc. time-share project. Buildings Fund – This fund is used to account for resources and expenditures for capital improvement projects that are related to the improvement and maintenance of public facilities and structures. Library Fund – This fund is used to account for resources and expenditures for capital improvement projects that are related to the purchase of library resources for the Multi-Agency Library. Special Assessment District Funds – This fund is used to account for the construction of public improvements from proceeds resulting from the creation of various assessment Districts. Assessment District No. 94-3 Merano Silver Spur Ranch Highlands Undergrounding CFD University Special Assessment Assessment 29 University Park 141 Page 350 of 1128 CITY OF PALM DESERT Combining Balance Sheet Other Capital Projects Funds Assets: Pooled cash and investments 14,157,687$ 1,807,607$ 1,438,911$ 10,047$ Receivables: Interest ---- Prepaid costs --17,119 - Deposits --20,000 - Advances to other funds ---- Total Assets 14,157,687$ 1,807,607$ 1,476,030$ 10,047$ Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable 662,673$ 43,436$ 3,435$ -$ Unearned revenues 251,273 --- Total Liabilities 913,946 43,436 3,435 - Fund Balances: Nonspendable: Prepaid costs and deposits --17,119 - Restricted for: Capital projects ---- Special programs ---- Assigned to: Capital projects 12,823,354 --- Property acquisition 420,387 --- Public facilities -- 1,455,476 10,047 Special programs ---- Street related purposes -1,764,171 -- Total Fund Balances 13,243,741 1,764,171 1,472,595 10,047 Total Liabilities, Deferred Inflows of Resources and Fund Balances 14,157,687$ 1,807,607$ 1,476,030$ 10,047$ June 30, 2023 Parks and Recreational Facilities Capital Projects Reserve Drainage Facilities Economic Development 142 Page 351 of 1128 CITY OF PALM DESERT Combining Balance Sheet Other Capital Projects Funds Assets: Pooled cash and investments Receivables: Interest Prepaid costs Deposits Advances to other funds Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Unearned revenues Total Liabilities Fund Balances: Nonspendable: Prepaid costs and deposits Restricted for: Capital projects Special programs Assigned to: Capital projects Property acquisition Public facilities Special programs Street related purposes Total Fund Balances Total Liabilities, Deferred Inflows of Resources and Fund Balances June 30, 2023 (CONTINUED) 1,418,070$ 111,405$ 10,480,088$ 3,350,995$ - - - - - - - - - - - - - - 3,179,888 - 1,418,070$ 111,405$ 13,659,976$ 3,350,995$ 115,431$ -$ 320,989$ 1,439,741$ - - - - 115,431 - 320,989 1,439,741 - - - - - - - - 1,302,639 - - - - - - 1,911,254 - - - - - - 13,338,987 - - - - - - 111,405 - - 1,302,639 111,405 13,338,987 1,911,254 1,418,070$ 111,405$ 13,659,976$ 3,350,995$ Art in Public Places Signalization Capital Golf Buildings 143 Page 352 of 1128 CITY OF PALM DESERT Combining Balance Sheet Other Capital Projects Funds Assets: Pooled cash and investments Receivables: Interest Prepaid costs Deposits Advances to other funds Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Unearned revenues Total Liabilities Fund Balances: Nonspendable: Prepaid costs and deposits Restricted for: Capital projects Special programs Assigned to: Capital projects Property acquisition Public facilities Special programs Street related purposes Total Fund Balances Total Liabilities, Deferred Inflows of Resources and Fund Balances June 30, 2023 687,519$ 188,794$ 618$ 21$ - - - - - - - - - - - - - - - - 687,519$ 188,794$ 618$ 21$ -$ -$ -$ -$ - - - - - - - - - - - - - 188,794 618 21 - - - - - - - - - - - - - - - - 687,519 - - - - - - - 687,519 188,794 618 21 687,519$ 188,794$ 618$ 21$ Silver Spur Ranch Highlands Undergrounding Library Assessment District No. 94-3 Merano 144 Page 353 of 1128 CITY OF PALM DESERT Combining Balance Sheet Other Capital Projects Funds Assets: Pooled cash and investments Receivables: Interest Prepaid costs Deposits Advances to other funds Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Unearned revenues Total Liabilities Fund Balances: Nonspendable: Prepaid costs and deposits Restricted for: Capital projects Special programs Assigned to: Capital projects Property acquisition Public facilities Special programs Street related purposes Total Fund Balances Total Liabilities, Deferred Inflows of Resources and Fund Balances June 30, 2023 670$ 33,652,432$ - - - 17,119 - 20,000 - 3,179,888 670$ 36,869,439$ -$ 2,585,705$ - 251,273 - 2,836,978 - 17,119 670 190,103 - 1,302,639 - 14,734,608 - 420,387 - 14,804,510 - 687,519 - 1,875,576 670 34,032,461 670$ 36,869,439$ Total Other Capital Projects Funds Assessment District 29 145 Page 354 of 1128 CITY OF PALM DESERT Combining Statement of Revenues, Expenditures and Changes in Fund Balances Other Capital Projects Funds Year Ended June 30, 2023 Revenues: Licenses and permits -$-$-$ -$ Intergovernmental revenues --32,575 - Charges for services --- - Investment earnings 306,876 66,253 56,065 351 Rental income --82,981 - Miscellaneous 50,000 -- - Total Revenues 356,876 66,253 171,621 351 Expenditures: Current: General government 400,000 -487,069 - Parks, recreation and culture 8,911,852 --- Public works 336,423 306,143 - - Capital outlay 1,395,245 -- - Total Expenditures 11,043,520 306,143 487,069 - Excess of Revenues Over (Under) Expenditures (10,686,644) (239,890) (315,448) 351 Other Financing Sources (Uses) Transfers in 14,184,017 -- - Transfers out - - - - Total Other Financing Sources (Uses)14,184,017 - - - Net Change in Fund Balances 3,497,373 (239,890) (315,448) 351 Fund Balances, Beginning of Year 9,746,368 2,004,061 1,788,043 9,696 Fund Balances, End of Year 13,243,741$ 1,764,171$ 1,472,595$ 10,047$ Capital Projects Reserve Drainage Facilities Economic Development Parks and Recreational Facilities 146 Page 355 of 1128 CITY OF PALM DESERT Combining Statement of Revenues, Expenditures and Changes in Fund Balances Other Capital Projects Funds Year Ended June 30, 2023 Revenues: Licenses and permits Intergovernmental revenues Charges for services Investment earnings Rental income Miscellaneous Total Revenues Expenditures: Current: General government Parks, recreation and culture Public works Capital outlay Total Expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year (CONTINUED) 571,716$ -$ -$ -$ - - - - - - 2,587,864 - 48,669 3,720 416,972 89,036 - - - - 164,790 - - - 785,175 3,720 3,004,836 89,036 - - - 296,969 123,717 - 889,835 - - - - - 532,954 - - 1,599,420 656,671 - 889,835 1,896,389 128,504 3,720 2,115,001 (1,807,353) - - - 1,168,341 (70,806) - - - (70,806) - - 1,168,341 57,698 3,720 2,115,001 (639,012) 1,244,941 107,685 11,223,986 2,550,266 1,302,639$ 111,405$ 13,338,987$ 1,911,254$ Art in Public Places Signalization Capital Golf Buildings 147 Page 356 of 1128 CITY OF PALM DESERT Combining Statement of Revenues, Expenditures and Changes in Fund Balances Other Capital Projects Funds Year Ended June 30, 2023 Revenues: Licenses and permits Intergovernmental revenues Charges for services Investment earnings Rental income Miscellaneous Total Revenues Expenditures: Current: General government Parks, recreation and culture Public works Capital outlay Total Expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year -$ -$ -$ -$ - - - - - - - - 22,964 - - - - - - - - - - - 22,964 - - - - - - - - - - - - - - - - - - - - - - - 22,964 - - - - - - - - - - - - - - - 22,964 - - - 664,555 188,794 618 21 687,519$ 188,794$ 618$ 21$ Library Assessment District No. 94- 3 Merano Silver Spur Ranch Highlands Undergrounding 148 Page 357 of 1128 CITY OF PALM DESERT Combining Statement of Revenues, Expenditures and Changes in Fund Balances Other Capital Projects Funds Year Ended June 30, 2023 Revenues: Licenses and permits Intergovernmental revenues Charges for services Investment earnings Rental income Miscellaneous Total Revenues Expenditures: Current: General government Parks, recreation and culture Public works Capital outlay Total Expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year -$ 571,716$ - 32,575 - 2,587,864 - 1,010,906 - 82,981 - 214,790 - 4,500,832 - 1,184,038 - 9,925,404 - 642,566 - 3,527,619 - 15,279,627 - (10,778,795) - 15,352,358 - (70,806) - 15,281,552 - 4,502,757 670 29,529,704 670$ 34,032,461$ Assessment District 29 Total Other Capital Projects Fund 149 Page 358 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Capital Properties Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 48,192,389$ 48,192,389$ 48,192,389$ -$ Resources (Inflows): Investment earnings 40,000 40,000 2,203,742 2,163,742 Transfers in - 1,800,000 1,800,000 - Amounts Available for Appropriations 48,232,389 50,032,389 52,196,131 2,163,742 Charges to Appropriation (Outflow): General government - - 1,540 (1,540) Parks and recreation 100,000 650,000 - 650,000 Public works - 1,962,058 824,708 1,137,350 Capital outlay - 22,995,454 158,993 22,836,461 Total Charges to Appropriations 100,000 25,607,512 985,241 24,622,271 Budgetary Fund Balance, June 30 48,132,389$ 24,424,877$ 51,210,890$ 26,786,013$ 150 Page 359 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Capital Projects Reserve Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 9,746,368$ 9,746,368$ 9,746,368$ -$ Resources (Inflows): Investment earnings 10,000 10,000 306,876 296,876 Miscellaneous -262,321 50,000 (212,321) Transfers in 400,000 14,154,017 14,184,017 30,000 Amounts Available for Appropriations 10,156,368 24,172,706 24,287,261 114,555 Charges to Appropriation (Outflow): General government 400,000 400,000 400,000 - Parks, recreation and culture 173,800 13,136,121 8,911,852 4,224,269 Public works -341,696 336,423 5,273 Capital outlay 250,000 1,657,311 1,395,245 262,066 Total Charges to Appropriations 823,800 15,535,128 11,043,520 4,491,608 Budgetary Fund Balance, June 30 9,332,568$ 8,637,578$ 13,243,741$ 4,606,163$ 151 Page 360 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Drainage Facilities Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 2,004,061$ 2,004,061$ 2,004,061$ -$ Resources (Inflows): Investment earnings 20,000 20,000 66,253 46,253 Amounts Available for Appropriations 2,024,061 2,024,061 2,070,314 46,253 Charges to Appropriation (Outflow): Public works 1,105,000 2,099,016 306,143 1,792,873 Total Charges to Appropriations 1,105,000 2,099,016 306,143 1,792,873 Budgetary Fund Balance, June 30 919,061$ (74,955)$ 1,764,171$ 1,839,126$ 152 Page 361 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Economic Development Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,788,043$ 1,788,043$ 1,788,043$ -$ Resources (Inflows): Rental income 64,543 64,543 82,981 18,438 Intergovernmental 35,000 35,000 32,575 (2,425) Investment earnings 10,000 10,000 56,065 46,065 Amounts Available for Appropriations 1,897,586 1,897,586 1,959,664 62,078 Charges to Appropriation (Outflow): General government 474,442 1,210,624 487,069 723,555 Total Charges to Appropriations 474,442 1,210,624 487,069 723,555 Budgetary Fund Balance, June 30 1,423,144$ 686,962$ 1,472,595$ 785,633$ 153 Page 362 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Parks and Recreational Facilities Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 9,696$ 9,696$ 9,696$ -$ Resources (Inflows): Investment earnings 100 100 351 251 Amounts Available for Appropriations 9,796 9,796 10,047 251 Budgetary Fund Balance, June 30 9,796$ 9,796$ 10,047$ 251$ 154 Page 363 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Art in Public Places Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,244,941$ 1,244,941$ 1,244,941$ -$ Resources (Inflows): Licenses and permits 328,275 328,275 571,716 243,441 Investment earnings 400 400 48,669 48,269 Miscellaneous 164,790 164,790 164,790 - Amounts Available for Appropriations 1,738,406 1,738,406 2,030,116 291,710 Charges to Appropriation (Outflow): Parks, recreation and culture 196,520 196,520 123,717 72,803 Capital outlay 593,390 915,390 532,954 382,436 Transfers out 120,000 120,000 70,806 49,194 Total Charges to Appropriations 909,910 1,231,910 727,477 504,433 Budgetary Fund Balance, June 30 828,496$ 506,496$ 1,302,639$ 796,143$ 155 Page 364 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Signalization Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 107,685$ 107,685$ 107,685$ -$ Resources (Inflows): Investment earnings 300 300 3,720 3,420 Amounts Available for Appropriations 107,985 107,985 111,405 3,420 Budgetary Fund Balance, June 30 107,985$ 107,985$ 111,405$ 3,420$ 156 Page 365 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Capital Golf Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 11,223,986$ 11,223,986$ 11,223,986$ -$ Resources (Inflows): Charges for services 2,587,864 2,587,864 2,587,864 - Investment earnings 30,000 30,000 416,972 386,972 Amounts Available for Appropriations 13,841,850 13,841,850 14,228,822 386,972 Charges to Appropriation (Outflow): Parks, recreation and culture 891,500 4,649,681 889,835 3,759,846 Total Charges to Appropriations 891,500 4,649,681 889,835 3,759,846 Budgetary Fund Balance, June 30 12,950,350$ 9,192,169$ 13,338,987$ 4,146,818$ 157 Page 366 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule Buildings Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 2,550,266$ 2,550,266$ 2,550,266$ -$ Resources (Inflows): Investment earnings 5,000 5,000 89,036 84,036 Transfers in - 1,168,341 1,168,341 - Amounts Available for Appropriations 2,555,266 3,723,607 3,807,643 84,036 Charges to Appropriation (Outflow): General government - 150,792 296,969 (146,177) Capital outlay 935,000 3,313,471 1,599,420 1,714,051 Total Charges to Appropriations 935,000 3,464,263 1,896,389 1,567,874 Budgetary Fund Balance, June 30 1,620,266$ 259,344$ 1,911,254$ 1,651,910$ 158 Page 367 of 1128 OTHER GOVERNMENTAL FUNDS – DEBT SERVICE FUND City Highlands Undergrounding Fund – This fund is used to account for the resources and payment for debt related to Highlands Undergrounding. 159 Page 368 of 1128 CITY OF PALM DESERT Balance Sheet Other Debt Service Fund Assets: Pooled cash and investments 120,692$ Receivables: Assessments 1,076,523 Due from other governments 4,375 Total Assets 1,201,590$ Deferred Inflows of Resources: Unavailable revenues 1,076,523$ Total Deferred Inflows of Resources 1,076,523 Fund Balances: Restricted for: Debt service 125,067 Total Fund Balances 125,067 Total Liabilities, Deferred Inflows of Resources and Fund Balances 1,201,590$ City Highland Undergrounding June 30, 2023 160 Page 369 of 1128 CITY OF PALM DESERT Statement of Revenues, Expenditures and Changes in Fund Balances Other Debt Service Fund Year Ended June 30, 2023 Revenues: Special assessments collected 128,760$ Investment earnings 2,725 Total Revenues 131,485 Expenditures: Current: General government 1,814 Debt service: Principal retirement 50,000 Interest and fiscal charges 54,310 Total Expenditures 106,124 Excess of Revenues Over (Under) Expenditures 25,361 Net Changes in Fund Balances 25,361 Fund Balances, Beginning of Year 99,706 Fund Balances, End of Year 125,067$ City Highlands Undergrounding 161 Page 370 of 1128 CITY OF PALM DESERT Budgetary Comparison Schedule City Highland Undergrounding Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 99,706$ 99,706$ 99,706$ -$ Resources (Inflows): Special assessments collected 120,391 120,391 128,760 8,369 Investment earnings 100 100 2,725 2,625 Amounts Available for Appropriations 220,197 220,197 231,191 10,994 Charges to Appropriation (Outflow): General government 16,684 16,684 1,814 14,870 Debt service: Principal retirement 50,000 50,000 50,000 - Interest and fiscal charges 54,310 54,310 54,310 - Total Charges to Appropriations 120,994 120,994 106,124 14,870 Budgetary Fund Balance, June 30 99,203$ 99,203$ 125,067$ 25,864$ 162 Page 371 of 1128 INTERNAL SERVICE FUNDS Internal Service Funds are used to account for services provided to other departments or agencies of the City on a cost reimbursement basis. Equipment Replacement – This fund is used to account for financial transactions related to replacement of City-owned vehicles and equipment. Compensation Benefits Fund – This fund is used to account for funding of compensated absences. 163 Page 372 of 1128 CITY OF PALM DESERT Combining Statement of Net Position Internal Service Funds Total Assets: Current Assets Cash and investments 6,824,115$ 2,328,629$ 9,152,744$ Prepaid costs 1,996 - 1,996 Total Current Assets 6,826,111 2,328,629 9,154,740 Capital Assets Nondepreciable 11,821 - 11,821 Depreciable, net 2,597,637 - 2,597,637 Capital Assets, Net 2,609,458 - 2,609,458 Total Assets 9,435,569 2,328,629 11,764,198 Liabilities: Current Liabilities Compensated absences - 500,000 500,000 Total Current Liabilities - 500,000 500,000 Noncurrent Liabilities: Compensated absences - 2,101,028 2,101,028 Total Noncurrent Liabilities - 2,101,028 2,101,028 Total Liabilities - 2,601,028 2,601,028 Net Position: Invested in capital assets 2,609,458 - 2,609,458 Unrestricted 6,826,111 (272,399) 6,553,712 Total Net Position 9,435,569$ (272,399)$ 9,163,170$ June 30, 2023 Equipment Replacement Compensation Benefits 164 Page 373 of 1128 CITY OF PALM DESERT Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds Total Operating Expenses: General and administrative -$ 425,084$ 425,084$ Maintenance and operations 394,955 - 394,955 Depreciation and amortization 751,260 - 751,260 Total Operating Expenses 1,146,215 425,084 1,571,299 Operating Loss (1,146,215) (425,084) (1,571,299) Nonoperating Revenues (Expenses) Interest income 209,556 76,734 286,290 Gain on disposal of capital assets 78,803 - 78,803 Total Nonoperating Revenues (Expenses) 288,359 76,734 365,093 Income (Loss) Before Capital Contributions & Transfers (857,856) (348,350) (1,206,206) Transfers In 860,000 101,289 961,289 Change in Net Position 2,144 (247,061) (244,917) Net Position, Beginning of Year 9,433,425 (25,338) 9,408,087 Net Position, End of Year 9,435,569$ (272,399)$ 9,163,170$ Year Ended June 30, 2023 Equipment Replacement Compensation Benefits 165 Page 374 of 1128 CITY OF PALM DESERT Combining Statement of Cash Flows Internal Service Funds Total Cash Flows from Operating Activities: Payments to suppliers (401,470)$ -$ (401,470)$ Cash paid to employees for services - (113,394) (113,394) Net Cash Used by Operating Activities (401,470) (113,394) (514,864) Cash Flows from Noncapital and Related Financing Activities: Cash received from other funds 860,000 101,289 961,289 Net Cash Provided by Noncapital and Related Financing Activities 860,000 101,289 961,289 Cash Flows from Capital and Related Financing Activities: Purchases of capital assets (90,621) - (90,621) Proceeds from sale of capital assets 86,265 - 86,265 Net Cash Used by Capital and Related Financing Activities (4,356) - (4,356) Cash Flows from Investing Activities: Interest and dividends 209,556 76,734 286,290 Net Cash Provided by Investing Activities 209,556 76,734 286,290 Net Decrease Cash and Cash Equivalents 663,730 64,629 728,359 Cash and Cash Equivalents, Beginning of Year 6,160,385 2,264,000 8,424,385 Cash and Cash Equivalents, End of Year 6,824,115$ 2,328,629$ 9,152,744$ Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating Income (Loss)(1,146,215)$ (425,084)$ (1,571,299)$ Adjustments to Reconcile Operating Loss to Net Cash Provided (used) by Operating Activities: Depreciation and amortization 751,260 - 751,260 (Increase) decrease in prepaid expense 4,150 - 4,150 Increase (decrease) in accounts payable (10,665) - (10,665) Increase (decrease) in compensated absences - 311,690 311,690 Total Adjustments 744,745 311,690 1,056,435 Net Cash Used by Operating Activities (401,470)$ (113,394)$ (514,864)$ Year Ended June 30, 2023 Equipment Replacement Compensation Benefits 166 Page 375 of 1128 CUSTODIAL FUNDS Custodial Funds are used to account for assets held by the city as an custodian for individuals, private organizations, other governments and/or funds. Retiree Service Stipend Fund – This fund is used to account for assets held to pay for the retiree service stipend. Special Assessment Funds – These funds are used to account for the collection of special assessments and the future payment of debt service related to bonds issued. 167 Page 376 of 1128 CITY OF PALM DESERT All Custodial Funds Totals Assets: Pooled cash and investments 2,956,059$ 4,664,107$ 7,620,166$ Receivables: Assessments - 35,481,134 35,481,134 Accrued interest -699 699 Due from other governments -24,995 24,995 Restricted assets: Cash and investments with fiscal agents - 2,948,748 2,948,748 Total Assets 2,956,059 43,119,683 46,075,742 Liabilities: Deposits payable - 35,481,134 35,481,134 Due to bondholders - 7,638,549 7,638,549 Total Liabilities - 43,119,683 43,119,683 Net Position: Restricted for other purposes 2,956,059 - 2,956,059 Total Net Position 2,956,059$ -$2,956,059$ Combining Statement of Net Position Retiree Service Stipend Fund Special Assessment Funds June 30, 2023 168 Page 377 of 1128 CITY OF PALM DESERT Combining Statement of Changes in Fiduciary Net Position All Custodial Funds Year Ended June 30, 2023 Additions: Intergovernmental -$ 3,054,242$ 3,054,242$ Investment income 72,709 128,974 201,683 Contributions from City 834,654 - 834,654 Total Additions 907,363 3,183,216 4,090,579 Deductions Administrative expenses - 50,179 50,179 Contractual services 834,654 381,793 1,216,447 Interest expense - 1,446,244 1,446,244 Debt service expense - 1,305,000 1,305,000 Total Deductions 834,654 3,183,216 4,017,870 Changes in Net Position 72,709 - 72,709 Net Position, Beginning of Year 2,883,350 7,790,756 10,674,106 Restatement (Note 15)- (7,790,756) (7,790,756) Net Position, Beginning of Year, as Restated 2,883,350 - 2,883,350 Net Position, End of Year 2,956,059$ -$ 2,956,059$ Retiree Service Stipend Fund Special Assessment Funds Total Custodial Funds 169 Page 378 of 1128 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN 170 Page 379 of 1128 DESCRIPTION OF STATISTICAL SECTION CONTENTS Year Ended June 30, 2023 This part of the City of Palm Desert’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the city’s overall financial health. Contents Financial Trends These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the City’s most significant local revenue source. Debt Capacity These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it preforms. Sources: Unless otherwise noted, the information in theses schedules is derived from the annual comprehensive financial reports for the relevant year. 171 Page 380 of 1128 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN 172 Page 381 of 1128 City of Palm Desert Net Position by Component Last Ten Fiscal Years (Accrual Basis of Accounting) Governmental Activities 2023 2022 2021 2020 2019 Net Investment in capital assets 416,680,537 422,400,639 421,568,819 424,163,964 429,729,549 Restricted 172,531,052 164,636,470 197,082,889 196,858,726 200,536,233 Unrestricted 156,106,349 146,766,766 92,557,050 86,017,220 90,057,306 Total Governmental Activities Net Position 745,317,938 733,803,875 711,208,758 707,039,910 720,323,088 Business-Type Activities - - - - - Net Investment in capital assets 69,239,563 67,327,809 67,981,326 68,394,059 69,070,734 Unrestricted 10,541,338 10,495,570 8,069,182 6,672,261 6,590,251 Total Business-type Activities Net Position 79,780,901 77,823,379 76,050,508 75,066,320 75,660,985 Primary Government Net Investment in capital assets 485,920,100 489,728,448 489,550,145 492,558,023 498,800,283 Restricted 172,531,052 164,636,470 197,082,889 196,858,726 200,536,233 Unrestricted 166,647,687 157,262,336 100,626,232 92,689,481 96,647,557 Total Primary Government Net Position 825,098,839 811,627,254 787,259,266 782,106,230 795,984,073 Governmental Activities 2018 2017 2016 2015 2014 Net Investment in capital assets 438,184,070 449,037,170 459,644,720 473,722,694 466,246,732 Restricted 197,349,364 197,824,604 193,298,431 135,900,520 140,460,575 Unrestricted 83,054,707 87,091,894 78,812,066 71,530,456 105,537,785 Total Governmental Activities Net Position 718,588,141 733,953,668 731,755,217 (3)681,153,670 (2) 712,245,092 Business-Type Activities - Net Investment in capital assets 69,111,797 69,829,772 70,202,487 71,129,743 72,009,184 Restricted - - - - - Unrestricted 5,609,843 4,829,456 4,479,575 4,302,958 3,920,382 Total Business-type Activities Net Position 74,721,640 74,659,228 74,682,062 75,432,701 75,929,566 Primary Government Net Investment in capital assets 507,295,867 518,866,942 529,847,207 544,852,437 538,255,916 Restricted 197,349,364 197,824,604 193,298,431 135,900,520 140,460,575 Unrestricted 88,664,550 91,921,350 83,291,641 75,833,414 109,458,167 Total Primary Government Net Position 793,309,781 808,612,896 806,437,279 756,586,371 788,174,658 (1) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert. (2) The implementation of GASB Statement No. 68 and Statement No. 71 resulted in a prior year restatement decrease of $37.73 million in the governmental activities net positons. (3) The City's Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Fund received $6,571,706 for a combined total of $72,138,669 of capital bond proceeds transferred from the Successor Agency. 173 Page 382 of 1128 City of Palm Desert Changes in Net Position Last Ten Fiscal Years (Accrual Basis of Accounting) Governmental Activities: General government 26,185,065 24,738,040 25,610,212 24,297,715 23,252,576 Public safety 40,753,734 37,396,780 34,280,941 37,286,860 37,195,732 Housing & Redevelopment 13,251,192 9,626,399 10,496,579 8,802,290 9,067,858 Parks, recreation and culture 19,112,483 8,880,984 7,969,386 7,651,094 8,284,914 Public works 20,646,936 22,071,598 24,979,279 28,270,798 14,836,332 Payments to other agencies - 2,692 - - - Interest on long term debt 143,521 148,079 176,259 203,183 231,228 Total Governmental activities Expenses 120,092,931 102,864,572 103,512,656 106,511,940 92,868,640 Business-Type Activities: Desert Willow Golf Course 11,073,128 9,910,813 8,960,991 8,603,243 8,700,514 Office Complex - Parkview 1,409,321 951,353 872,212 856,196 874,753 Total Business-Type Activities 12,482,449 10,862,166 9,833,203 9,459,439 9,575,267 Total primary government expenses 132,575,380 113,726,738 113,345,859 115,971,379 102,443,907 Program Revenues Governmental Activities Charges for services General government 2,678,135 2,901,226 2,437,840 2,343,116 2,645,724 Housing & Redevelopment 11,016,631 8,060,726 7,455,959 8,446,585 8,180,354 Public safety 18,831,126 17,506,658 18,828,021 16,429,810 14,503,741 Parks, recreation and culture 3,339,445 675,307 325,485 532,543 829,557 Public works 2,958,606 3,075,351 2,443,299 2,386,635 2,762,045 Operating grants & contributions 13,039,734 20,328,308 10,617,579 10,416,281 10,426,397 Capital grants & contributions 4,673,498 4,828,197 16,836,560 3,661,487 4,016,193 Total Governmental Activities Program Revenues 56,537,175 57,375,773 58,944,743 44,216,457 43,364,011 Business-Type Activities Charges for Service: Desert Willow Golf Course 12,159,419 11,068,847 9,171,607 7,099,985 8,743,654 Office Complex - Parkview 1,473,376 1,340,680 1,291,020 1,311,140 1,298,066 Capital grants & contributions 99,154 187,083 220,198 183,556 504,217 Total Business-type activities program revenue 13,731,949 12,596,610 10,682,825 8,594,681 10,545,937 Total Primary Government program revenue 70,269,124 69,972,383 69,627,568 52,811,138 53,909,948 Net (Expense) / Revenue Governmental activities (63,555,756) (45,488,799) (44,567,913) (62,295,483) (49,504,629) Business-type activities 1,249,500 1,734,444 849,622 (864,758) 970,670 Total Primary Government Net Expense (62,306,256) (43,754,355) (43,718,291) (63,160,241) (48,533,959) General Revenues & Other Changes in Net Position Governmental Activities: Taxes: (Combined/Net Pass-through)67,809,190 66,204,764 47,221,069 45,210,477 53,894,917 Investment Earnings 5,165,176 (1,971,646) 301,330 2,366,204 3,170,693 Gain(loss) on sales of capital assets 825,294 --80,490 7,452 Miscellaneous 1,250,480 3,850,798 1,214,362 1,355,134 1,396,514 Special Item (3)----(7,530,000) Transfers In / (Out) ----300,000 Gain on Transfer to Successor Agency/ Extraordinary Gain (2)----- Total Governmental activities Net Revenues 75,050,140 68,083,916 48,736,761 49,012,305 51,239,576 Business-Type Activities: Investment Earnings 450,279 (99,994) 20,283 159,115 181,310 Gain(loss) on sales of capital assets - - - - 87,365 Miscellaneous 257,743 138,421 114,283 110,978 - Transfers Out - - - - (300,000) Total Business-type activities 708,022 38,427 134,566 270,093 (31,325) Total primary government 75,758,162 68,122,343 48,871,327 49,282,398 51,208,251 Change in Net Position Governmental Activities: 11,494,384 22,595,117 4,168,848 (13,283,178) 1,734,947 Business-Type Activities:1,957,522 1,772,871 984,188 (594,665) 939,345 Total primary government 13,451,906 24,367,988 5,153,036 (13,877,843) 2,674,292 (1) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert. (2) The City's Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Fund received $6,571,706 for a combined total of $72,138,669 of capital bond proceeds transferred from the Successor Agency. (3) City established an allowance for advances owed by the Successor Agency. Expenses 20192020202120222023 174 Page 383 of 1128 City of Palm Desert Changes in Net Position Continued Last Ten Fiscal Years (Accrual Basis of Accounting) Governmental Activities: General government 18,467,097 15,708,054 14,836,881 16,337,393 19,194,343 Public safety 36,543,050 34,943,220 34,009,984 32,077,635 29,339,106 Housing & Redevelopment 9,605,756 10,954,630 8,162,859 11,666,724 7,852,611 Parks, recreation and culture 8,240,115 9,850,200 9,223,126 8,598,242 8,327,402 Public works 18,358,907 14,892,145 47,044,197 19,144,213 21,123,197 Payments to other agencies - - - - - Interest on long term debt 259,250 271,603 289,000 294,258 237,053 Total Governmental Activities Expenses 91,474,175 86,619,852 113,566,047 88,118,465 86,073,712 Business-Type Activities: Desert Willow Golf Course 8,763,220 8,243,515 8,165,183 8,433,267 8,452,001 Office Complex - Parkview 930,815 893,125 1,005,918 934,296 922,341 Total Business-Type Activities 9,694,035 9,136,640 9,171,101 9,367,563 9,374,342 Total primary government expenses 101,168,210 95,756,492 122,737,148 97,486,028 95,448,054 Program Revenues Governmental Activities Charges for services General government 2,388,260 2,095,648 2,185,123 2,088,393 2,152,280 Housing & Redevelopment 7,551,760 6,861,450 7,029,595 7,971,265 6,851,603 Public safety 10,801,436 10,603,708 10,606,464 9,987,891 10,239,886 Parks, recreation and culture 821,824 793,527 772,801 772,728 729,076 Public works 2,685,831 2,327,521 2,186,153 1,832,241 2,180,877 Operating grants & contributions 8,555,881 7,931,900 9,496,520 7,512,894 9,745,609 Capital grants & contributions 2,442,621 7,710,355 10,839,715 19,297,015 21,086,051 Total Governmental Activities Program Revenues 35,247,613 38,324,109 43,116,371 49,462,427 52,985,382 Business-Type Activities Charges for Service: Desert Willow Golf Course 8,432,273 7,497,664 7,240,866 7,894,676 7,804,904 Office Complex - Parkview 1,250,456 1,284,462 1,280,230 1,306,042 1,254,521 Capital grants & contributions 167,670 605,186 111,942 47,768 94,076 Total Business-type activities program revenue 9,850,399 9,387,312 8,633,038 9,248,486 9,153,501 Total Primary Government program revenue 45,098,012 47,711,421 51,749,409 58,710,913 62,138,883 Net (Expense) / Revenue Governmental Activities (56,226,562) (48,295,743) (70,449,676) (38,656,038) (33,088,330) Business-type activities 156,364 250,672 (538,063) (119,077) (220,841) Total Primary Government Net Expense (56,070,198) (48,045,071) (70,987,739) (38,775,115) (33,309,171) General Revenues & Other Changes in Net Position Governmental Activities: Taxes: (Combined/Net Pass-through)50,150,650 47,628,454 44,747,151 41,931,997 39,952,738 Investment Earnings 1,901,536 1,041,232 2,074,934 494,452 358,674 Contributions not restricted for specific purpose - - - - - Gain(loss) on sales of assets 17,274 2,145 24,292 11,720 488,319 Miscellaneous 1,573,106 1,522,363 1,828,677 1,726,007 1,994,506 Special Item (3)- - - - - Transfers In / (Out)300,000 300,000 237,500 437,500 437,500 Gain on Transfer to Successor Agency/Extraordinary Gain (2) - - 72,138,669 - - Total Governmental Activities Net Revenues 53,942,566 50,494,194 121,051,223 44,601,676 43,231,737 Business-Type Activities: Investment Earnings 74,873 26,494 24,924 11,774 13,646 Gain(loss) on sales of capital assets 131,175 - - 47,938 - Miscellaneous - - - - - Transfers Out (300,000) (300,000) (237,500) (437,500) (437,500) Total Business-type activities (93,952) (273,506) (212,576) (377,788) (423,854) Total primary government 53,848,614 50,220,688 120,838,647 44,223,888 42,807,883 Change in Net Position Governmental Activities: (2,283,996) 2,198,451 50,601,547 5,945,638 10,143,407 Business-Type Activities:62,412 (22,834) (750,639) (496,865) (644,695) Total primary government (2,221,584) 2,175,617 49,850,908 5,448,773 9,498,712 (1) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert. (2) The City's Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Fund received $6,571,706 for a combined total of $72,138,669 of capital bond proceeds transferred from the Successor Agency. (3) City established an allowance for advances owed by the Successor Agency. Expenses 20142015201620172018 175 Page 384 of 1128 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN 176 Page 385 of 1128 City of Palm Desert Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) General Fund:2023 2022 2021 2020 2019 Nonspendable 3,501,822 4,050,414 4,178,180 7,196,092 10,559,396 Committed 83,424,843 82,741,109 73,856,851 66,012,415 63,197,223 Assigned 19,282,496 18,238,107 16,696,825 16,196,564 15,964,130 Unassigned 14,707,351 32,645,330 5,681,608 3,473,480 3,322,321 Total General Fund 120,916,512 137,674,960 100,413,464 92,878,551 93,043,070 All other Governmental Funds: Nonspendable 51,657 19,591 18,427 15,705 193,189 Restricted 172,531,603 164,636,470 168,368,520 168,806,454 175,780,733 Committed 15,568,245 15,761,482 16,312,379 16,275,373 16,247,652 Assigned 32,522,600 28,078,039 27,459,735 27,133,815 21,238,271 Unassigned - (126,614) - - - Total all other Governmental Funds 220,674,105 208,368,968 212,159,061 212,231,347 213,459,845 General Fund:2018 2017 2016 2015 2014 Nonspendable 10,509,094 9,067,979 9,528,630 10,312,261 7,745,320 Committed 59,666,638 - - - - Assigned 15,492,508 658,817 991,853 1,771,278 4,425,423 Unassigned 4,702,308 74,259,748 71,842,172 67,727,130 66,203,203 Total General Fund 90,370,548 83,986,544 82,362,655 79,810,669 78,373,946 All other Governmental Funds: Nonspendable 1,726 1,276 3,052 348 6,713 Restricted 169,549,126 171,044,474 165,411,544 (3) 106,261,212 114,194,435 Committed 16,751,821 16,771,055 16,873,834 16,952,887 21,644,068 Assigned 23,258,063 23,250,337 24,172,531 24,429,824 Unassigned - - - - - Total all other Governmental Funds 209,560,736 211,067,142 182,288,430 147,386,978 160,275,040 (1) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert. (2) Advances to the Successor Agency reclassified from Nonspendable to Restricted for Special Revenue Funds. (3) The City's Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Fund received $6,571,706 for a combined total of $72,138,669 of capital bond proceeds transferred from the Successor Agency. 177 Page 386 of 1128 City of Palm Desert Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) Revenues:2023 2022 2021 2020 2019 Taxes 86,687,919 84,037,191 65,209,322 59,635,918 67,102,185 Special assessments collected 3,618,972 3,407,107 3,381,657 3,481,924 3,948,157 Licenses & permits 3,111,176 2,622,695 1,504,694 1,268,965 1,416,829 Intergovernmental revenues 6,711,363 12,300,071 20,136,679 6,401,926 6,194,152 Rental income 8,958,960 8,129,025 7,320,419 7,071,648 6,899,916 Charges for services 8,743,794 6,175,500 4,889,634 5,272,577 5,223,285 Investment Earnings 12,129,730 (2,402,801) 1,298,728 10,311,159 7,166,097 Fines & forfeitures 127,087 105,198 147,671 127,801 273,434 Miscellaneous 852,153 7,340,808 3,776,838 4,741,905 2,892,940 Contributions from other government - 1,974,653 - - - Total Revenues 130,941,154 123,689,447 107,665,642 98,313,823 101,116,995 Expenditures: General government 24,896,946 24,079,563 23,478,543 21,468,512 24,269,546 Housing & redevelopment 10,310,551 8,232,440 8,839,559 7,090,941 7,504,119 Public safety 40,660,248 37,322,951 34,035,102 37,021,952 36,901,283 Parks, recreation & culture 17,708,634 7,439,687 6,073,015 5,902,166 6,497,391 Public works 15,287,888 17,667,805 18,533,419 21,994,806 8,728,354 Capital outlay 7,835,762 12,110,677 7,840,438 5,117,968 3,396,511 Debt service: Principal retirement 263,809 2,294,052 174,000 225,000 587,000 Interest and fiscal charges 135,903 157,462 184,529 210,292 244,050 Total Expenditures 117,099,741 109,304,637 99,158,605 99,031,637 88,128,254 Excess(deficiency of Revenues over(under) expenditures 13,841,413 14,384,810 8,507,037 (717,814) 12,988,741 Other financing sources (uses) Transfers in 26,746,473 11,555,402 10,186,341 10,702,762 5,319,448 Transfers out (27,707,762) (11,864,512) (11,230,751) (11,377,965) (5,736,558) Special Item (3)- - - - (6,000,000) Extraordinary Gain / (Loss) (2)- 2,603,284 - - - Sale of property (88,163) (1,001,688) - - - Proceeds from subscriptions 529,156 - - - - Total Other financing sources (uses)(520,296) 1,292,486 (1,044,410) (675,203) (6,417,110) Net Change In Fund Balance 13,321,117 15,677,296 7,462,627 (1,393,017) 6,571,631 Revenues:2018 2017 2016 2015 2014 Taxes 61,906,859 59,466,545 56,735,503 52,571,369 50,464,511 Special assessments collected 3,445,246 3,318,114 3,296,705 3,058,766 3,486,220 Licenses & permits 1,326,049 1,678,709 2,057,843 1,757,250 2,262,907 Intergovernmental revenues 5,682,704 7,249,515 15,429,238 18,981,304 7,380,744 Rental income 6,675,632 6,439,458 5,896,480 5,660,762 5,626,850 Charges for services 2,894,821 2,356,363 2,082,843 1,819,464 2,165,020 Investment Earnings 3,626,892 2,086,224 1,837,319 1,242,662 864,853 Fines & forfeitures 162,370 135,276 295,269 224,612 231,768 Miscellaneous 2,886,542 2,594,433 2,317,499 2,377,923 3,539,552 Contributions from other government - 3,550,991 - 9,168 10,749,218 Contributions from property owners - - 7,868 - 420,590 Total Revenues 88,607,115 88,875,628 89,956,567 87,703,280 87,192,233 Expenditures: General government 19,281,102 16,887,293 15,783,955 15,467,746 17,070,816 Housing & redevelopment 8,522,801 9,239,680 6,438,849 9,349,021 6,650,178 Pass-through-agreement - - - - - Public safety 36,247,656 34,674,418 33,750,347 31,819,214 29,139,735 Parks, recreation & culture 6,467,713 7,157,821 6,831,534 6,236,717 5,802,941 Public works 12,183,852 8,794,894 11,031,584 13,082,388 12,741,764 Contributions to property owners - - 19,584,487 49 2,350,187 Capital outlay 915,422 2,169,035 7,071,738 19,339,987 6,273,822 Debt service: Principal retirement 150,000 237,000 257,000 4,944,000 674,000 Interest and fiscal charges 260,971 277,814 296,336 240,219 242,495 Total Expenditures 84,029,517 79,437,955 101,045,830 100,479,341 80,945,938 Excess(deficiency of Revenues over(under) expenditures 4,577,598 9,437,673 (11,089,263) (12,776,061) 6,246,295 Other financing sources (uses) Transfers in 6,613,352 9,406,888 6,030,706 6,132,859 4,861,551 Transfers out (6,313,352) (12,218,428) (6,075,206) (6,971,359) (5,424,051) Special Item (3)- - - - - Extraordinary Gain / (Loss) (2)- - 72,138,669 - - Sale of property - - 225,000 2,163,222 911,001 Proceeds from subscriptions - - - - - Total Other financing sources (uses)300,000 (2,811,540) 72,319,169 1,324,722 348,501 Net Change In Fund Balance 4,877,598 6,626,133 61,229,906 (11,451,339) 6,594,796 0.7%0.6%1.2% (1) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert. For more information on the dissolution of the RDA please see Note 16 and 17. (2) The City's Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Fund received $6,571,706 for a combined total of $72,138,669 of capital bond proceeds transferred from the Successor Agency. (3) City established an allowance for advances owed by the Successor Agency. Debt service as a percentage of noncapital expenditures Debt service as a percentage of noncapital expenditures 6.4%0.5% 1.0%0.5%0.4%2.5%0.4% 178 Page 387 of 1128 City of Palm Desert Graphs - Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) (1) Combined Other is a combination of rental income, investment earnings, and charges for services. (2) Miscellaneous Other is a combination of fines and forfeitures, miscellaneous, contributions from other governments, and contributions from property owners. (3) Debt Expenditures is a combination of interest/fiscal charges and principal retirement . (4) Public works is a combination of public works and contributions to property owners. Note: Graphs excludes Other financing sources and uses. $0 $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 $300,000,000 FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015FY 2014Total Revenues Combined other (1) Miscellaneous other (2) Intergovernmental revenues Licenses & permits Taxes & Special Assessments $0 $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 $300,000,000 FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015FY 2014Total Expenditures Parks, recreation & culture Pass-through-agreement Debt Expenditures (3) Capital outlay Public works (4) Public safety Housing & Redevelopment General Government -179 Page 388 of 1128 City of Palm Desert Supplemental - Historical General Fund Revenues (including Transfers In) Last Ten Fiscal Years FY 2023 2022 2021 2020 2019 Revenue Type: Sales Tax 26,354,774$ 26,193,390$ 21,156,220$ 18,445,806$ 21,434,387$ Transient Occupancy Tax 23,825,410 22,098,939 10,760,455 11,681,583 17,250,843 Property Tax (3)12,952,007 11,703,419 11,193,276 11,101,584 11,074,207 Investment Earnings 5,025,534 (1,867,595) 284,744 4,181,814 2,672,643 Transfer In 2,478,731 3,774,873 3,515,966 2,472,976 937,202 Franchises 3,574,273 3,334,555 3,066,989 3,025,984 3,078,855 State Subventions (1) (3)146,957 127,546 38,945 60,593 82,722 Building & Grading Permits 2,290,974 2,079,314 1,195,893 953,176 1,064,071 Reimbursements (4)1,464,230 530,474 1,229,484 1,375,770 1,468,351 Business License Tax 1,139,514 1,326,920 962,940 1,038,137 1,216,712 Timeshare Mitigation Fee 1,711,324 1,555,137 1,501,625 1,467,905 1,678,375 Plan Check Fees 644,448 616,576 480,881 468,180 619,763 Property Transfer Tax 934,735 1,197,951 1,027,833 566,468 727,978 Other Revenues (2)3,581,082 8,337,209 8,072,509 3,130,862 2,352,803 Total General Revenue 86,123,993$ 81,008,708$ 64,487,760$ 59,970,838$ 65,658,912$ FY 2018 2017 2016 2015 2014 Revenue Type: Sales Tax 18,627,704$ 18,505,449$ 18,994,779$ 17,565,134$ 17,258,958$ Transient Occupancy Tax 17,019,034 15,054,259 11,252,997 10,799,680 9,855,509 Property Tax (3)10,777,998 10,157,813 10,461,595 9,710,990 9,041,428 Investment Earnings 1,237,562 644,341 725,015 416,656 405,456 Transfer In 1,610,830 1,472,852 1,390,258 2,179,472 1,373,786 Franchises 3,097,521 3,146,702 3,095,873 3,102,431 3,007,215 State Subventions (1) (3)38,876 23,101 59,317 155,049 22,089 Building & Grading Permits 1,048,973 1,247,390 1,216,115 1,279,706 1,695,303 Reimbursements (4)1,388,654 1,407,811 1,589,511 1,604,707 1,809,323 Business License Tax 1,154,275 1,118,183 1,269,082 1,160,207 1,169,316 Timeshare Mitigation Fee 1,543,762 1,467,028 1,500,683 1,483,158 1,333,586 Plan Check Fees 691,096 431,115 592,818 505,370 662,893 Property Transfer Tax 664,822 690,975 491,060 558,965 530,556 Other Revenues (2)1,951,122 2,185,703 2,189,063 1,713,758 1,932,009 Total General Revenue 60,852,229$ 57,552,722$ 54,828,166$ 52,235,283$ 50,097,427$ (1) State Subventions is any combination of motor vehicle, off-highway in-lieu, and subventions from state. (2) Other Revenues is any combination of miscellaneous penalties and interest, permits, grants, parking bails, fees, sales of maps and publications, vehicle and court fines, rental income, other revenues and Federal ARPA-Covid19. (3) The State of California reprogramed motor vehicle fees, the City now receives this as property taxes. (4) Reimbursements is a combination of RDA costs and other reimbursements, due to dissolution in February 2012 the RDA reimbursement is limited and applies to existing projects. 180 Page 389 of 1128 City of Palm Desert Supplemental Graph - Historical General Fund Revenues (Including Transfers In) Last Ten Fiscal Years (1) Combined Other is any combination of transfers, franchises, state subventions*, building and grading permits, reimbursements, business license taxes, timeshare mitigation fees, plan check fees, property transfer taxes. It also may include any combination of miscellaneous bails, fees, fines, grants, incomes, penalties, permits, sales and taxes. *State Subventions is any combination of motor vehicle, off-highway in-lieu, and subventions from state. $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 FY 2015 FY 2014Combined Other (1) Interest Property Tax Transient Occupancy Tax 181 Page 390 of 1128 City of Palm Desert Supplemental - Historical General Fund Expenditures (Including Transfers Out) Last Ten Fiscal Years FY 2023 2022 2021 2020 2019 Expenditure: Public Safety (1)23,304,557$ 20,288,195$ 19,326,751$ 21,415,334$ 20,975,032$ City Administration (2)14,202,930 12,620,102 12,990,562 11,429,468 12,521,081 Public Works Administration 3,026,733 2,265,476 1,886,402 2,457,045 2,149,715 Community Promotions 1,347,204 1,216,272 420,424 947,370 1,249,674 Street Maintenance 2,156,583 2,421,966 2,317,468 2,212,933 2,185,648 Building Safety 1,366,067 1,751,817 1,461,477 1,661,372 1,828,083 Street Resurfacing - - - - - Public Works (4)3,852,469 1,338,520 1,165,671 1,151,447 1,250,969 Other Expenditures (3)35,851,470 18,572,299 17,384,092 18,860,388 20,826,188 Total Expenditures 85,108,013$ 60,474,647$ 56,952,847$ 60,135,357$ 62,986,390$ FY 2018 2017 2016 2015 2014 Expenditure: Public Safety (1)21,088,867$ 20,424,249$ 20,151,237$ 18,784,117$ 17,306,342$ City Administration (2)11,460,325 8,238,228 7,971,706 7,561,255 7,413,578 Public Works Administration 2,333,897 2,637,630 2,664,871 2,645,443 2,556,967 Community Promotions 1,179,305 1,062,611 791,565 749,631 618,138 Street Maintenance 2,020,797 2,418,451 2,709,328 2,631,590 2,806,168 Building Safety 1,579,734 1,849,442 1,888,290 1,847,798 1,783,918 Street Resurfacing 2,760 25,326 1,083,919 998,463 4,466 Public Works (4)1,133,007 970,877 1,004,989 1,067,837 1,018,435 Other Expenditures (3)13,669,533 18,302,019 14,010,275 14,512,426 14,430,399 Total Expenditures 54,468,225$ 55,928,833$ 52,276,180$ 50,798,560$ 47,938,411$ (1) Public Safety is any combination of animal regulation, police services, community safety and traffic safety expenditures, this does not include the cost for Fire Services. Fire Services are reported in a different fund. (2) City Administration is any combination of community services, independent audit, City attorney, City clerk, City council, City manager, information technology, elections, finance, general services, human resources, insurance, legal special services, legislative advocacy and unemployment insurance expenditures. (3) Other Expenditures is any combination of acquisitions, committees, contributions, retiree health, planning & community development, economic development, marketing, interfund transfers, parks, recreation and culture, extraordinary loss and visitor center, capital outlay, special item, included in the transfer out is transfer to the Fire fund for its shortfall. (4) Public Works is a combination of curb & gutter, parking lot, auto fleet, corporate yard, public building maintenance, Portola Community center, storm water permit. 182 Page 391 of 1128 City of Palm Desert Supplemental Graph- Historical General Fund Expenditures (Including Transfers Out) Last Ten Fiscal Years (1) Public Safety is any combination of animal regulation, police services, community safety and traffic safety expenditures, this does not include the cost for Fire Services. Fire Services are reported in a different fund. (2) City Administration is any combination of community services, independent audit, City attorney, City clerk, City council, City manager, information technology, elections, finance, general services, human resources, insurance, legal special services, legislative advocacy and unemployment insurance expenditures. (3) Other Expenditures is any combination of acquisitions, committees, contributions, retiree health, planning & community development, economic development, marketing, interfund transfers, parks, recreation and culture, extraordinary loss and visitor center, capital outlay, special item, included in the transfer out is transfer to the Fire fund for its shortfall. (4) Public Works is a combination of curb & gutter, parking lot, auto fleet, corporate yard, public building maintenance, Portola Community center, storm water permit. $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 $90,000,000 FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 FY 2015 FY 2014Other Expenditures Comb (3) Public Works (4) City Administration (2) Public Safety (1) 183 Page 392 of 1128 City of Palm Desert Supplemental Historical General Revenue and Expenditures Per Capita Last Ten Fiscal Years FY 2023 2022 2021 2020 2019 Total General Revenue (2)86,123,993$ 77,168,851$ 60,971,794$ 57,497,862$ 64,721,710$ Population (1)50,615 50,889 53,892 52,986 53,625 General Revenue Per Capita 1,702 1,516 1,131 1,085 1,207 FY 2018 2017 2016 2015 2014 Total General Revenue (2)59,241,399$ 56,079,870$ 53,437,908$ 50,055,811$ 48,723,641$ Population (1)52,769 50,740 49,335 51,053 50,417 General Revenue Per Capita 1,123 1,105 1,083 980$ 966$ FY 2023 2022 2021 2020 2019 Total General Expenditures (2)85,108,013$ 52,730,364$ 49,481,094$ 51,498,878$ 57,900,932$ Population (1)50,615 50,889 53,892 52,986 53,625 General Expenditures Per Capita 1,681 1,036 918 972 1,080 FY 2018 2017 2016 2015 2014 Total General Expenditures (2)49,992,388$ 48,427,111$ 48,134,252$ 46,302,187$ 44,183,659$ Population (1)52,769 50,740 49,335 51,053 50,417 General Expenditures Per Capita 947 954 976 907$ 876$ (1) Population figures are as of January start of fiscal year. (2) Interfund Transfers In/Out, extraordinary loss (gain), and special item are not included in total. Sources: Population figures from State Department of Finance, City of Palm Desert Finance Department 184 Page 393 of 1128 City of Palm Desert Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years Fiscal Year Ended June 30 Residential Property Commercial Industrial Property Institutional Property Vacant Land Less: Tax Exempt Total Taxable Assessed Value Total Direct Tax Rate Estimated Actual Taxable Value (1) 2023 13,770,177,817 3,039,934,131 72,379,384 271,422,690 *- 18,094,846,015 1.00000 17,895,334,799 2022 12,816,062,846 2,919,685,840 67,899,671 254,623,765 *- 16,974,917,677 1.00000 16,768,080,495 2021 12,277,100,484 2,872,316,290 65,652,944 279,025,011 *- 16,413,235,941 1.00000 16,217,619,993 2020 11,781,804,552 2,771,257,791 63,343,035 300,879,417 *(45,437) 15,835,758,806 1.00000 15,636,583,844 2019 11,231,546,199 2,675,659,205 62,224,633 373,347,796 (326,679,322) 15,556,158,170 1.00000 15,045,226,485 2018 10,757,283,204 2,554,854,761 59,762,684 388,457,449 (313,754,093) 14,940,671,116 1.00000 14,445,331,683 2017 10,555,732,091 2,434,816,656 58,318,962 379,073,252 (306,174,550) 14,579,740,457 1.00000 14,095,158,994 2016 10,174,360,142 2,358,860,033 56,840,001 412,090,006 (312,620,004) 14,210,000,198 1.00000 13,743,682,041 2015 9,636,181,445 2,290,456,630 54,211,991 420,142,932 (298,165,952) 13,552,997,813 1.00000 13,086,962,905 2014 9,043,372,632 2,247,924,054 64,595,519 426,330,424 (297,139,386) 12,919,103,760 1.00000 12,453,921,285 (1) Estimated Actual Taxable Value = Net Taxable Value * Per HDL there was an artifact change in the Riverside County Assessors data that occurred primarily between 2018 and 2019, new vs old system differences, the few properties which are listed as having asssessed value and being non-taxable are either new to the roll or are newly non-taxable for 2019. Notes: Property Taxes in Riverside County are subject to the State of California's Proposition 13, Jarvis-Gann Initiative which allows reappraisals of real property only when there is a change in ownership or new construction takes place. Further, the proposition limits property assessment increase to no more than two(2%) percent annually. Property is assessed at one hundred percent (100%) of its fair market value at the time of new construction or change in ownership. The tax rate is one (1%) percent of the assessed value. Source: Riverside County Assessor thru HDL Coren & Cone 185 Page 394 of 1128 City of Palm Desert Historical Net Assessed Taxable Values Citywide Graph - Assessed Valuation Growth Last Ten Fiscal Years i honestly imagine it being a little Historical Major Additions Annexations FY Retail Centers FY Cook Street Area 88/89 Town Center Mall 83/84 Country Club #28 93/94 Desert Springs Marriott 86/87 Price Club/Costco 93/94 One Eleven Town Ctr 88/89 Palm Desert CC #29 94/95 Mervyn's Center 92/93 Palm Desert Greens 04/05 Desert Crossing 95/96 Suncrest 04/05 Lucky's/Albertson Deep Canyon 96/97 Remodel 111 Town Ctr (Best Buy) 97/98 Gardens on El Paseo 98/99 Remodel Westfield Mall (Sears, Barnes & Noble) 04/05 Sears Automotive 04/05 Lowes Home Improvement 05/06 Walmart / Sam's Supercenters 05/06 Kohl's 07/08 Golfsmith Extreme 08/09 El Paseo Village 09/10 Best Buy & Ulta 11/12 Remodel Westfield Mall (Dick's/H&M/Restaurants) 12/13 PGA Tour Superstore 12/13 Total Wine & More 13/14 Tesla Motors 15/16 Source: Riverside County Assessor thru HDL Coren & Cone 3.22%5.08%5.02% 2.56%2.48% 4.15%3.93%3.72%3.39% 6.72% -5.00% 0.00% 5.00% 10.00% 15.00% 20.00% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Percent Increase in Assessed Valuation FY 2014 to FY 2023 $- $5,000 $10,000 $15,000 $20,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Value in Millions Net Assessed Valuation - Historical Comparison FY 2014 to FY 2023 186 Page 395 of 1128 City of Palm Desert Supplemental FY 2023 and 2022 Breakdown of Basic 1% Property Tax Rate Not in Redevelopment Project Area Taxing Agency FY 2023 Rate FY 2022 Rate County General 28.177327%28.177327% County Free Library 2.728242%2.728242% County Structure Fire Protection 5.873086%5.873086% City of Palm Desert (1)0.000000%0.000000% Desert Sands Unified School District 36.221587%36.221587% Desert Community College 7.526714%7.526714% Riverside County Reg. Park & Open Space 0.426231%0.426231% Riverside County Office of Education 4.094919%4.094919% Desert Hospital 1.996808%1.996808% Coachella Valley Public Cemetery 0.339927%0.339927% Desert Recreation District 2.071624%2.071624% Coachella Valley Mosquito & Vector Control 1.369698%1.369698% Coachella Valley County Water 2.736607%2.736607% Coachella Valley County Water Imp. District 80 2.972906%2.972906% Coachella Valley County Water Storm Water Unit 3.464324%3.464324% General Purpose Basic 1%100.000000%100.000000% (1) City of Palm Desert is a No-Low Property Tax City and the 7% represents what the state allocates to No-Low Property Tax Cities. Source: County of Riverside, Property Tax Allocation Percentages, TRA 018-041. 187 Page 396 of 1128 City of Palm Desert Property Tax Rates Direct and Overlapping Property Tax Rates Last Ten Fiscal Years Fiscal Year Basic County-wide Levy Total Direct Tax Rate Desert Sands Unified School District Desert Community College Dist. Coachella Valley Water District Coachella Valley Water District I.D. 58 Palm Springs Unified B&I 1192-A Ds 2023 1.00000 1.00000 0.07500 0.03950 0.11000 0.00000 0.15187 2022 1.00000 1.00000 0.07500 0.03950 0.11000 0.00000 0.15030 2021 1.00000 1.00000 0.07390 0.03947 0.10000 0.00000 0.10334 2020 1.00000 1.00000 0.07381 0.03983 0.10000 0.00000 0.10542 2019 1.00000 1.00000 0.07418 0.03978 0.10000 0.00000 0.10603 2018 1.00000 1.00000 0.07251 0.04030 0.10000 0.00000 0.11146 2017 1.00000 1.00000 0.08599 0.02036 0.10000 0.00000 0.11802 2016 1.00000 1.00000 0.10915 0.02087 0.10000 0.00000 0.08978 2015 1.00000 1.00000 0.10984 0.02325 0.10000 0.00000 0.10160 2014 1.00000 1.00000 0.10954 0.01995 0.10000 0.00000 0.12961 Notes: Proposition 13 limits the ability of the city to raise the property tax rate. Source: CalMuni Statistics Inc City Direct Overlapping Rates 188 Page 397 of 1128 City of Palm Desert Principal Property Taxpayers Current and Ten Years Ago 2023 2014 Taxpayer Taxable Assessed Value Percentage of Total City Tax Assessed Value Taxpayer Taxable Assessed Value Percentage of Total City Tax Assessed Value NEWAGE DesertSprings 183,277,948$ 1.02%WEA Palm Desert 144,890,985$ 1.16% WEA Palm Desert 167,598,620 0.93%Marriott Desert Springs 136,022,554 1.09% Gardens on El Paseo LLC 146,001,786 0.81%Gardens on El Paseo LLC 100,463,843 0.80% WVC Rancho Mirage Inc 134,387,296 0.75%WVC Rancho Mirage 84,971,489 0.68% PRU Desert Crossing LLC 107,432,299 0.60%Pru Desert Crossing II LLC 81,024,967 0.65% CC Cimarron LP 71,394,568 0.40%Sinatra and Cook Project 54,874,399 0.44% First American Trust 63,108,340 0.35%Walmart Real Estate Business Trust 48,324,981 0.39% Walmart /Sams 58,460,349 0.33%Segovia Operations 47,715,576 0.38% Segovia Operations 55,777,259 0.31%Monarch Sevilla Venture 47,671,183 0.38% Sunrise Spectrum 54,306,893 0.00%Sunrise Spectrum 46,907,800 0.38% Total 1,041,745,358$ 5.80%Total 792,867,777$ 6.35% Note:The estimated property tax revenue stated above is based upon net taxable values, tax ratios and base year values that impact the revenue calculation. As a result, parcels with the same assessed value that are assigned to different tax rate areas may contribute dissimilar amounts of total revenue to the City and Redevelopment Agency. Source: HdL Coren & Cone thru Riverside County Assessor 22/23 and HdL Coren & Cone thru Riverside County Assessor 13/14 189 Page 398 of 1128 City of Palm Desert Property Tax Levies and Collections Last Ten Fiscal Years Fiscal Year Taxes Levied Collections Ended for the Percentage in Subsequent Percentage June 30, Fiscal Year Amount of Levy Years (3)Amount (3)(4)of Levy 2014 5,623,740 5,048,787 89.78% 574,953 5,623,740$ 100.00% 2015 5,911,501 5,523,658 93.44% 387,843 5,911,501$ 100.00% 2016 6,212,993 5,943,252 95.66% 269,741 6,212,993$ 100.00% 2017 6,731,899 6,022,566 89.46% 182,652 6,205,218$ 92.18% 2018 6,729,952 6,553,297 97.38% 173,642 6,726,940$ 99.96% 2019 6,867,405 6,640,656 96.70% 207,894 6,848,550$ 99.73% 2020 7,202,939 6,502,032 90.27% 211,602 6,713,634$ 93.21% 2021 7,332,966 6,391,062 87.16% 256,431 6,647,493$ 90.65% 2022 8,203,212 7,930,195 96.67% 273,017 8,203,212$ 100.00% 2023 8,853,225 8,320,643 93.98% 532,582 8,853,225$ 100.00% (1) City of Palm Desert is on the "Teeter Plan" with the County of Riverside. The first payment was received in the fiscal year 1993/94. (2)City of Palm Desert is a "No-Low Property Tax City". Proposition 13 rolled the tax rates back to 1973 which is when the City of Palm Desert incorporated and the Property Tax rates were zero. Based on current state law the County allocates 7% of the 1% assessed values within the City less the Redevelopment Agency tax increment. Fiscal Year 1992/93 was the first year to receive the No/Low taxes. (3) Includes tax collections accrued as of June 30, 2023. (4) Includes amounts receivable for tax year 2022-2023 along with prior receivables due for prior tax years. Source: Riverside County Auditor Controller Office and City of Palm Desert Collected within the Fiscal Year of the Levy (1) (2) Total Collections to Date 190 Page 399 of 1128 City of Palm Desert Supplemental Top 25 Sales Tax Generators Graph - Historical Sales Tax Trends June 30, 2023 Top 25 Sales Tax Generators (1)Primary Economic Category ABC SUPPLY COMPANY BUILDING MATERIALS ALBERTSON'S FOOD CENTERS GROCERY STORES APPLE INC ELECTRONICS/APPLIANCE STORES ARIZONA TILE HOME FURNISHINGS ASHLEY FURNITURE HOMESTORE HOME FURNISHINGS BEST BUY STORES LP ELECTRONICS/APPLIANCE STORES CARMAX AUTO SUPERSTORES USED AUTOMOTIVE DEALERS CIRCLE K CONVENIENCE STORES/LIQUOR CONSOLIDATED ELECTRICAL DISTRIBUTORS PLUMBING/ELECTRICAL SUPPLIES COSTCO DISCOUNT DEPT STORES JW MARRIOTT DESERT SPRINGS HOTELS/MOTELS LEEDS JEWELERS JEWELRY STORES LOUIS VUITTON FAMILY APPAREL LOWES BUILDING MATERIALS MACY'S DEPARTMENT STORES DEPARTMENT STORES NORDSTROM RACK DEPARTMENT STORES PGA TOUR SUPERSTORE SPORTING GOODS/BIKE STORES SAKS FIFTH AVENUE DEPARTMENT STORES SAM'S CLUB WITH FUEL DISCOUNT DEPT STORES SIMPLOT GARDEN/AGRICULTURAL SUPPLIES SUPERIOR POOL PRODUCTS DRUGS/CHEMICALS TARGET STORES DISCOUNT DEPT STORES TOMMY BAHAMA FAMILY APPAREL TOTAL WINE & MORE CONVENIENCE STORES/LIQUOR WAL-MART SUPERCENTER DISCOUNT DEPT STORES (1) Listed in Alphabetical Order Note : Current California law prohibits production of individual tax information as an effort not to infringe on proprietary information, therefore confidential information which is protected by law is not disclosed. *The State of California exchanged Sales Tax Revenue with Property taxes, this amount represents the portion of sales tax that were exchanged. Source: SBOE Data, MuniServices LLC. In Lieu given to city from State ERAF Property Taxes, City of Palm Desert $7.0 $9.0 $11.0 $13.0 $15.0 $17.0 $19.0 $21.0 $23.0 $25.0 $27.0 $29.0 2014201520162017201820192020202120222023Millions Sales and Use Tax Trends FY 2014 - 2023 -2.57%0.66% 15.1% -13.9% 23.8% 1.8% 0.6% Amounts in Millions % = % Change from Prior Year 8.1% $17.258 $17.564 $18.994 $18.505 $18.627 $21.434 $18.445 $21.156 $26.193 $26.354 14.7%-In Lieu * 2.9% 191 Page 400 of 1128 City of Palm Desert Ratios of Outstanding Debt by Type Last Ten Fiscal Years Special Assessment/Total Percentage Total Debt Fiscal Local Obligation Capital Primary of Total Personal Per Year Bonds b,c,d Leases Government Income a,f Capita a,f 2014 8,246,000 1,222,915 9,468,915 0.39%198 2015 3,302,000 e 1,435,046 4,737,046 0.19% 99 2016 3,045,000 929,860 3,974,860 0.16%83 2017 2,808,000 499,881 3,307,881 0.14%69 2018 2,658,000 1,493,330 4,151,330 0.17%87 2019 2,071,000 1,595,394 3,666,394 0.24%128 2020 1,846,000 1,145,011 2,991,011 0.23%105 2021 1,672,000 675,976 2,347,976 0.20%92 2022 1,294,000 - 1,294,000 0.04%25 2023 1,162,000 - 1,162,000 0.04%23 Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements. a - Personal income, population and per capita information provided by California Department of Finance, and U.S Census Bureau and/or estimated by City Finance using 1% growth rate. b - Special Assessment Government Activities includes Highlands Undergrounding AD No# 04-01, as of June 30, 2023 the balance was $1.032M. c - Fiscal Year End 2009 the City issued the Energy Independence Program Limited Obligation Improvement Bonds Series 2009A (Taxable) $2.5 million Energy Independence Loan Program. The actual Bond Issuance was for $2.015m. At June 30, 2023 the oustanding balance was $0.071M d - The City issued $1.136 million dollars of the Energy Independence Program (AB811 Assessments) Limited Obligation Improvement Bonds (Taxable) The special assessment collection commenced during the fiscal year 2010-2011. At June 30, 2023 the outstanding balance was $0.059M. e - In addition the Palm Desert Financing Authority issued $5.225 million dollars of the Energy Independence Program Variable Rate Demand Lease Revenue Bonds, Series 2009 (Federally Taxable). On September 2, 2014 the bonds were called in full. As of June 30, 2017 there were no outstanding f - Personal income and Per Capita statistic includes government and business type activities combined. Governmental Activities Business Type Activities 192 Page 401 of 1128 City of Palm Desert Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years General Bonded Debt Outstanding Percentage of Actual Special Assessment Taxable Value of Per Bonds Property Capita Note: There are no General Obligation Bonds from FY 2014 to FY 2023 193 Page 402 of 1128 City of Palm Desert Supplemental Special Assessment Information June 30, 2023 District Name\Description 2003 01-01 Revenue Bonds Silver Spur Ranch Utility Undergrounding 5 Community Facilities District No. 2005-1 (University Park) Special Tax Bonds Series 2021A6 Community Facilities District No. 2021-1 (University Park) Special Tax Bonds Series 20217 2004-2 Section 29 Assessment District Limited Obligation Improvement Bonds Series 2021 Bond Issue Date 6/25/2003 7/13/2021 7/13/2021 6/23/2021 Final Maturity Date 9/2/2028 9/1/2036 9/1/2051 9/2/2037 Highest Interest Rate 5.375%4.000%4.000%5.100% Bond Issue Amount 2,340,000$ 5,165,000 15,200,000 16,400,000 Matured Principal 1,390,000$ 250,000 245,000 685,000 Called Principal 170,000$ - - - Outstanding Bonds (4)780,000$4,915,000$ 14,955,000$ 15,715,000$ Redemption Premium 3.00%3.00%3.00%3.00% Original Parcels 201 66 243 859 Active Parcels 193 55 243 776 Reserve Requirement 153,947$461,800$ 868,775$ 1,411,600$ Reserve Balance 22/23 (1)165,720$468,408$ 874,214$ 1,416,863$ Principal Due 23/24 (2)115,000$ 270,000 305,000 785,000 Principal Levied 22/23 (3)110,000$250,000 245,000 685,000 Interest Due 23/24 (2)38,763$187,050 562,575 612,900 Interest Levied 22/23 (3)44,669$194,850 570,825 635,450 22/23 Delinquency Rate 0.00%1.64%0.00%0.13% Arbitrage Installment Computation Date: 90% Rebate Due 06/25/23 N/A N/A N/A Arbitrage Yield Rate 4.9129%N/A N/A N/A Arbitrage-Amount Owed --- - Continuing Disclosure Last Report Issued:1/4/2021 02/2023 02/2023 02/2023 (1) Reserve Balances are as of 6/30/23. (2) Outstanding bond balance at June 30, 2023. (3) Amount represents principal and interest collected during the FY 22/23 tax roll for Debt Service Payment due in FY 23/24 per debt service schedule. (4) Levied amounts reflect adjustments for construction funds, reserve funds, redemption funds and other adjustments. (5) The schedule presents the information for each individual local obligation bonded district. Assessment Districts 94-3 Merano and 01-01 Silver Spur were refunded and obligated to pay Debt Service to Series 2003 Assessment Revenue Bonds see note 16 for additional information. (6) Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021A were used to refund Community Faciliites District No. 2005-1 (University Park) Special Tax Bonds Series 2006A (6) Community Facilities District No. 2021-1 (University Park) Special Tax Bonds 2021A were used to pay and defease a pro rata portion of outstanding Community Faciliites District No. 2005-1 (University Park) Special Tax Bonds Series 2006A Source: Willdan Financial Annual Report 194 Page 403 of 1128 City of Palm Desert Direct and Overlapping Government Activities Debt June 30, 2023 2022/23 Assessed Valuation:17,950,974,247$ City's Share of OVERLAPPING TAX AND ASSESSMENT DEBT:Total Debt 6/30/23 % Applicable (1) Debt 6/30/23 Desert Community College District 486,615,000$ 17.736% 86,306,036$ Desert Sands Unified School District 365,405,000 33.619% 122,845,507 Palm Springs Unified School District 418,287,347 4.116% 17,216,707 City of Palm Desert Limited Obligation Improvement Bonds 185,000 100.000% 185,000 City of Palm Desert Community Facilities District No. 2005-1 4,915,000 100.000% 4,915,000 City of Palm Desert Community Facilities District No. 2021-1 14,955,000 100.000% 14,955,000 City of Palm Desert 1915 Act Bonds 17,537,000 100.000% 17,537,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 263,960,250$ DIRECT AND OVERLAPPING GENERAL FUND DEBT: Riverside County General Fund Obligations 686,776,829$ 4.957%34,043,527$ Riverside County Pensions Obligations 748,540,000 4.957%37,105,128 Desert Sands Unified School District Certificates of Participation 13,785,000 33.619%4,634,379 City of Palm Desert - 100.000%- Desert Recreation District Certificates of Participation 1,389,522 25.849%359,178 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 76,142,212$ OVERLAPPING TAX INCREMENT DEBT:(SUCCESSOR AGENCIES)457,662,321$ 0.210-100%161,126,242$ TOTAL CITY DIRECT DEBT -$ TOTAL OVERLAPPING DEBT 501,228,704$ COMBINED TOTAL DEBT 501,228,704$ (2) (1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. Ratios to 2022-2023 Adjusted Assessed Valuation: Total Overlapping Tax and Assessment Debt 1.47% Total Direct Debt ($0)0.00% Net Combined Total Debt 2.79% Ratios to Redevelopment Successor Agencies Incremental Valuation (11,885,480,015)$ Total Overlapping Tax Increment Debt 1.36% Source: California Municipal Statistics, Inc., City of Palm Desert Finance Department 195 Page 404 of 1128 City of Palm Desert Legal Debt Margin Information Last Ten Fiscal Years Assessed Value 17,950,974,247$ Debt Limit (15% of Assessed Value) (1)2,692,646,137 Debt Applicable to Limit: General Obligation Bonds 1,032,000 Less: Amount set aside for repayment of general obligation debt - Total Debt Applicable to Limit - Legal debt margin 2,691,614,137$ 2014 2015 2016 2017 2018 Debt Limit 1,869,699,132 1,963,741,235 2,059,815,120 2,114,442,742 2,167,115,649 Total Net debt applicable to limit 1,526,000 1,489,000 1,451,000 1,410,000 1,368,000 Legal debt margin 1,868,173,132 1,962,252,235 2,058,364,120 2,113,032,742 2,165,747,649 Total net debt applicable to the limit as a percentage of debt limit 0.08%0.08%0.07%0.07%0.06% 2019 2020 2021 2022 2023 Debt Limit 2,256,723,736 2,345,639,686 2,432,559,897 2,513,282,720 2,692,646,137 Total Net debt applicable to limit 1,310,000 1,178,000 1,130,000 1,082,000 1,032,000 Legal debt margin 2,255,413,736 2,344,461,686 2,431,429,897 2,512,200,720 2,691,614,137 Total net debt applicable to the limit as a percentage of debt limit 0.06%0.05%0.05%0.04%0.04% (1) Section 43605 of the California Government Code. Source: California Municipal Statistic, Inc. San Francisco Legal Debt Margin Calculation for Fiscal Year 2023 FISCAL YEAR FISCAL YEAR 196 Page 405 of 1128 City of Palm Desert Pledged-Revenue Coverage Last Ten Fiscal Years Special Special Fiscal Assessment Assessment Year Collections a,c Principal Interest Coverage Collections Principal Interest Coverage 2012 8,822,163 3,332,000 4,897,651 1.0720 32,941,958 e 15,290,000 17,651,958 1.000 2013 9,524,786 3,786,896 5,255,558 1.0533 33,473,418 e 16,315,000 17,158,418 1.000 2014 d 14,895,214 12,324,000 d 4,954,432 0.8621 38,444,447 e 23,650,000 14,794,447 1.000 2015 10,848,129 g 8,159,000 f 4,543,692 0.8540 32,294,255 e 18,295,000 13,999,255 1.000 2016 8,537,227 25,401,000 h 4,463,786 0.2859 34,810,024 e 18,055,000 16,755,024 1.000 2017 5,896,670 3,192,000 3,233,399 0.9177 37,535,680 e, i 16,255,000 e, i 21,280,680 1.000 2018 5,590,479 3,545,000 3,088,864 0.8427 23,428,001 e, i 14,235,000 e, i 9,193,001 1.000 2019 5,608,312 2,427,000 2,942,348 1.0445 25,986,960 e, i 17,210,000 e, i 8,776,960 1.000 2020 5,280,905 2,080,000 2,818,146 1.0781 27,833,500 e, i 19,475,000 e, i 8,358,500 1.000 2021 5,397,140 2,119,000 2,698,952 1.1202 25,215,056 e, i 17,330,000 e, i 7,885,056 1.000 2022 j, k 3,342,319 488,000 1,072,389 2.1420 25,462,250 e, i 18,115,000 e, i 7,347,250 1.000 2023 3,253,687 1,439,235 1,577,199 1.0787 25,798,956 e, i 19,045,000 e, i 6,753,956 1.000 Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements.Liberty-Mitch a The City issued $2.015 million dollars of the Energy Independence Program (AB811 Assessments) Limited Obligation Improvement Bonds (Taxable) The special assessment collection will commence during the fiscal year 2009-2010 with the first interest payment paid on March 2, 2010. b Tax increment bonds are backed by property tax increment based on calculation provided by the Riverside County tax assessor office. Additional information on tax increment can be found in the notes to the financial statements. c The City issued $1.136 million dollars of the Energy Independence Program (AB811 Assessments) Limited Obligation Improvement Bonds (Taxable) The special assessment collection will commence during the fiscal year 2010-2011, in addition, the Palm Desert Financing Authority issued $5.225 million dollars of the Energy Independence Program Variable Rate Demand Lease Revenue Bonds, Series 2009 (Federally Taxable). Interest is paid monthly commencing August 2009 and Principal is paid annually on September 2. The first princiapl payment was paid on September 2, 2010 d A portion of the $50.51 (2007) and $17.915 (2008) million CFD 2005-1 (University Park) was prepaid in the amount of $6.269 Million. The prepaid $6.269M and $2.280 (2004-1) were called during on September 2, 2014. e The total amount payable for the bonded obligations is disbursed by the State of California Department of Finance to the City of Palm Desert Successor Agency. The annual collection equal the annual obligations. f The City called the $5.225 Million Energy Independence Program Variable Rate Demand Lease Revenue Bonds, Series 2009 (Federally Taxable) in full on September 2, 2014 in the amount of $4.485 Million. The Energy Fund used the remaining $5.225 Bond Funds in the amount of $2.155 Million in addition to the $2.5 Million loan from the City General Fund as proceeds to call the bonds. g The City of Palm Desert loaned the Energy Fund $2.5 Million to call the $5.225 Million Energy Independence Program Lease Revenue Bonds, Series 2009 (Federally Taxable). The $2.5 Million is included as Special Assessment Collections. h During the Fiscal Year 2015-16 the Communities Facilities District 2005-1 (University Park Series, Special Tax Bonds Series 2006A and Series 2007 defeased $20.885M of the original issued $67.715M. i During the Fiscal Year 2016-17 the Successor Agency issued four series of bonds (1) the Tax Allocation Refunding Bonds, 2017 Series A ($52.39M), (ii) Taxable Tax Allocation Refunding Bonds, 2017 Series B ($140.130M), Tax allocation Refunding Bonds, 2017 Series H-A ($7.365M), and (iv) Taxable Tax Allocation Refunding Bonds, 2017 H-B ($45.815M). See Note 18 Tax Allocation Bonds. The 2017 Refunding Bonds refunded all of the tax allocation revenue bonds; with the exception of the Project Area No. 1 2007A Bonds, and the Project Area No. 2 2003 Bonds. j During the Fiscal Year 2021-22, the City of Palm Desert issued CFD 2021-1 Special Tax Bonds Series 2021 and CFD 2005-1 Special Tax Refunding Bonds Series 2021A. The purpose of these bonds is to refund the CFD 2005-1 Special Tax Bonds Series 2006A. k During the Fiscal Year 2021-22, the City of Palm Desert issued Section 29 Assessment District 2004-02 Limited Obligation Refunding Improvement Bonds Series 2021. The purpose of this issuance is to refund the Section 29 AD 2004-02 Limited Obligation Improvement Bonds Series 2007. Tax Increment b Debt ServiceDebt Service Special Assessment Bonds 197 Page 406 of 1128 City of Palm Desert Demographic and Economic Statistics Last Ten Calendar Years Calendar Percentage Per Capita City Riverside Percentage County Year City Increase Personal Personal Unemployment County Increase Unemployment End Population (Decrease) Income CY a Income CY Rate b Population (Decrease) Rate b 2023 50,615 -0.54% 3,049,841,493$ 60,256$ 4.80%2,439,234 0.15%5.00% 2022 50,889 -5.57% 3,004,769,944$ 59,046$ 4.10%2,435,525 -0.77%4.00% 2021 53,892 1.71% 2,960,364,477$ 54,931$ 7.40%2,454,453 0.50%8.00% 2020 52,986 -1.19% 2,916,615,248$ 55,045$ 17.20%2,442,304 0.09% 14.70% 2019 53,625 1.62% 2,873,512,560$ 53,585$ 4.90%2,440,124 1.00%4.40% 2018 52,769 4.00% 2,831,046,858$ 53,650$ 5.00%2,415,955 1.31%4.80% 2017 50,740 2.85% 2,789,208,727$ 54,971$ 4.00%2,384,783 1.57%5.70% 2016 49,335 -3.37% 2,747,988,894$ 55,701$ 4.20%2,347,828 1.71%6.70% 2015 51,053 1.26% 2,707,378,221$ 53,031$ 4.60%2,308,441 1.25%6.50% 2014 50,417 0.94% 2,667,367,705$ 52,906$ 4.90%2,279,967 1.10%8.40% a - Personal Income estimated based on average growth rate of previous four years. The growth rate factor used was 1.5%. Income data will be updated once the actual data is available. b - Unemployment rate for fiscal year 22/23 is based on annual information from State of California Employment Development Department Labor Market Information Division (not seasonally adjusted) Sources: State Department of Finance, State Employment Development Department 198 Page 407 of 1128 City of Palm Desert Principal Employers Current and Nine Years Ago Employer Employees Rank Percentage of Total City Employment Employer Employees Rank Percentage of Total City Employment JW Marriot-Desert Springs Resort & DS Villas 2,304 1 10.02% JW Marriot-Desert Springs Resort & DS Villas 2,304 1 8.15% Universal Protection Services 1,500 2 6.52% Universal Protection Services 1,500 2 5.31% Securitas-Security Service USA 700 3 3.04% Securitas-Security Service USA 700 3 2.48% Avida Caregivers 550 4 2.39% Avida Caregivers-P.Desert 550 4 2.15% Organization of Legal Pro's 501 5 2.18% Sunshine Landscape 500 5 1.77% Sunshine Landscape 500 6 2.17% Bighorn Golf Club 250 6 0.88% Costco Wholesale 250 7 1.09% Costco 250 7 0.88% Bighorn Golf Club 250 8 1.09% Westin-Desert Willow 248 8 0.88% Yellow Cab of Desert 160 9 0.70% Time Warner Cable 236 9 0.83% Whole Foods Market 150 10 0.65% Marriott Shadow Rige 208 10 0.74% Sources: CA Employment Development Department - Federal and State Government not included * Data based on prior years numbers, at the time of preparation data was not available. 2023*2014 199 Page 408 of 1128 City of Palm Desert Supplemental Miscellaneous Statistics June 30, 2023 City/ Municipal Government Form of Government:Council - City Manager/Charter City Date of Incorporation:November 26, 1973 Number of Employees:123 Full-time Employees Size of City:26.96 Square Miles Geographic Location:Located 117 miles east of Los Angeles and 515 miles south of San Francisco. Streets:170 paved street miles Number of Business Licenses:4,843 active business licenses Number of Hotels & Rooms: 19 hotels, 2,822 rooms CONTRACT SERVICES: Police Department Contract with Riverside County Sheriff - 61 sworn positions plus 19 support staff (rounded to nearest FTE) Fire Department Contract with Riverside County/State Fire 49 positions plus 12 Fire Prevention staff Animal Control Riverside County Animal Services Water & Sewer Coachella Valley Water District Trash Collection Burrtec - Waste Management Electric Southern California Edison Gas Southern California Gas Telephone Verizon Airport Palm Springs International Airport Public Education Elementary School (grades K - 5) 4 Middle School (grades 6 - 8)1 High School (grades 9 - 12)1 Community College - College of the Desert 1 CSUSB - Palm Desert Campus 1 UCR - Palm Desert Graduate Center 1 Insurance Coverage General Liability Coverage Calif. Joint Powers Insurance Authority $50 Million/Event (Excludes Earthquake & Flood)Excess Coverage: from $2 Million up to $50 Million limit Special Events Calif. Joint Powers Insurance Authority $1 Million Worker's Compensation Calif. Joint Powers Insurance $10 Million Property Insurance Calif. Joint Powers Insurance Based on Prop. Value Health Insurance Medical California PERS; choice of PPO, HMO, Kaiser, Blue Shield Dental Delta Dental Vision Vision Service Plan Disability Insurance Disability - The Hartford Insurance Company Life The Hartford Insurance Company Retirement California PERS - Public Employees' Retirement System Source: City of Palm Desert 200 Page 409 of 1128 City of Palm Desert Full-time Equivalent City Government Employees by Function / Program Last Ten Fiscal Years Function / Program 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 General Government City 38 35 33 33 31 31 32 32 34 34 Economic Dev & Housing b 17 12 11 11 11 10 11 13 13 13 Public Safety 29 28 30 30 28 29 29 28 26 25 Police & Fire (1) 141 141 140 174 172 179 170 163 169 173 Public Works 39 33 38 38 39 39 39 40 40 40 Totals 264 249 252 286 281 288 281 276 282 285 (1) The City operates as a "contract city" utilizing, primarily, agreements with other governmental entities, private firms and individuals to provide services. Contracted services include: Police and Fire protection through the County of Riverside, Cal-Fire, animal control, health services, legal services and landscape maintenance. a - As of June 2011 realignments were made due to budget cuts, retirements and layoffs, these continued to FY 2013. b - On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert. Source: City of Palm Desert Financial Plan, California Department of Forestry and Fire Protection, Riverside County Sheriff's Department 201 Page 410 of 1128 City of Palm Desert Operating Indicators by Function / Program Last Ten Fiscal Years Function / Program 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 General Government Business License Inspections ********24 33 Contracted Services - Burrtec Waste (1) Refuse Collected (tons)60,753 61,932 60,226 58,096 59,154 56,346 54,301 52,772 54,865 57,935 Recyclables Collected 25,497 22,043 20,964 21,772 27,391 28,119 26,651 23,818 24,611 26,424 Public Safety Physical Arrests 1,155 1,198 1,066 621 758 1,654 1,620 1,284 1,946 1,348 Parking Violations 1,128 769 780 899 375 575 587 712 794 386 Traffic Violations 1,497 1,398 2,070 1,392 3,525 7,012 6,939 6,223 5,525 5,284 Emergency Responses-Fire Department 11,136 10,557 9,701 15,088 10,009 9,984 9,617 9,285 8,628 8,235 Fires Extinguished 98 138 104 147 93 90 68 103 88 106 Fire Inspections ###3,372 5,397 3,378 1,274 2,118 2,989 2,552 Building Permits Issued 4,795 5,211 3,651 3,118 3,912 3,644 4,734 4,704 4,909 5,552 Building Inspections Conducted 21,857 16,802 13,451 13,439 13,965 18,601 23,542 24,756 24,057 24,830 Public Works Street Resurfacing (miles) (3)37.6 2.25 1.83 16.9 31.6 7.3 25.8 2.9 8 34 Parks, recreation & culture Athletic Field Permits Issued 2,766 2,255 2,262 643 2,990 2,934 3,197 2,997 4,430 6,548 Amphitheater / Pavilions Permits Issued 292 350 244 6 119 121 106 104 283 247 Community Center Admissions 37,048 32,326 15,577 9,746 52,203 60,769 51,694 64,493 53,426 50,204 Aquatic Center Admissions (2)38,864 31,320 38,249 32,905 52,102 53,739 58,023 60,359 64,103 43,545 (1) The City operates as a "contract city" utilizing, primarily, agreement with other governmental entities, private firms and individuals to provide services. Contracted services include: Police and Fire protection through the County of Riverside, animal control, health services, legal services and landscape maintenance. (2) Aquatic Center operations began in June 2011, managed by the YMCA. (3) New methods of street resurfacing have improved efficiency, therefore equaling more miles resurfaced. (*) Per Building & Safety Department business license inspections are no longer done. (#) City discontinued the City Fire Marshal services and contracted with the County for State mandated inspections only. Sources: Riverside County Sheriff's Dept., California State Department of Forestry & Fire Protection, City of Palm Desert, Coachella Valley Recreation & Park District, Burrtec Waste and The YMCA. 202 Page 411 of 1128 City of Palm Desert Capital Asset Statistics by Function / Program Last Ten Fiscal Years Function / Program 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 General Government Contracted Services (1) Collection trucks 39 35 29 25 25 24 24 35 30 30 Public Safety - Police & Fire Police Stations 1111111111 Police Sub Stations 1111111111 Patrol Units-Cars 26 26 26 27 29 30 29 29 29 26 Patrol Units-Motorcycles 7777699111010 Fire Stations 3333333333 Fire Trucks 1 plus 1 reserve 1 plus 1 reserve 5 plus 2 reserve 4 plus 1 reserve 4 plus 1 Reserve 4 plus 1 Reserve 4 plus 1 Reserve 4 plus 1 Reserve 4 plus 1 Rsrvd 4 plus 1 Rsrvd Ambulance 4 plus 2 reserve 4 plus 2 reserve 4 plus 3 reserve 4 plus 3 reserve 4 plus 3 Reserve 4 plus 3 Reserve 4 plus 3 Reserve 4 plus 3 Reserve 4 plus 3 Rsrvd 4 plus 3 Rsrvd Fire Prevention Pick-ups ---2.5433333 Public Works Streets (miles)170 170 170 170 170 170 170 170 170 170 Traffic Signals 99 99 99 99 99 99 99 98 98 98 Parks, recreation & culture Acreage 201 201 201 201 201 201 201 201 201 201 Total Parks 13 13 13 13 13 13 13 13 13 13 Playgrounds 16 16 16 16 16 16 16 16 16 16 Baseball/softball diamonds 8888888888 Soccer/football fields 9999999999 Basketball Courts 11 11 11 11 11 11 11 11 11 11 Tennis Courts 10 10 10 10 10 10 10 10 10 10 Volleyball Courts 8888888888 Community Centers 2222222222 Skateboard Parks 2222222222 Aquatic Center 1111111111 Commercial Office Space (Parkview Office Complex) Leasable Space (square feet)47,909 50,322 50,322 50,322 50,322 50,322 50,322 50,322 50,322 50,322 Occupancy Rate 80%84%84%91%91%82%84%90%90%86% Number of Tenants by Type Government (State, local regional)5777777989 Non-Profit 2444433434 Private 3333323114 Square Footage lease by tenant Government (State, local regional)23,374 31,607 31,607 31,607 31,607 30,907 32,287 33,127 30,907 31,921 Non-Profit 4,873 7,339 7,339 7,341 6,621 4,061 4,061 3,561 6,269 3,294 Private 3,083 3,083 3,083 6,693 7,468 6,218 6,938 8,688 8,025 8,025 Vacant 16,597 8,293 8,293 4,681 4,626 9,136 8,416 4,946 5,121 7,082 Municipal Golf Course (Desert Willow Golf Resort) Courses - Fire Cliff and Mountain View 2222222222 Holes 36 36 36 36 36 36 36 36 36 36 Golf Carts 172 172 172 172 172 172 172 172 172 172 Clubhouse square footage 39,000 39,000 39,000 39,000 39,000 39,000 39,000 39,000 39,000 39,000 Rounds per Course Fire Cliff 48,410 52,415 47,695 38,057 48,646 46,620 39,424 39,366 44,845 45,841 Mountain View 50,160 47,949 49,005 35,332 43,523 43,712 39,931 40,910 42,407 43,160 Total Annual Rounds 98,570 100,364 96,700 73,389 92,169 90,332 79,355 80,276 87,252 89,001 (1) The City operates as a "contract city" utilizing, primarily, agreement with other governmental entities, private firms and individuals to provide services. Contracted services include: Police and Fire protection through the County of Riverside, animal control, health services, legal services and landscape maintenance. Sources: Riverside County Sheriff's Dept., California State Department of Forestry & Fire Protection, City of Palm Desert, Coachella Valley Recreation & Park District, Burrtec Waste 203 Page 412 of 1128 Note: This section is not required by GASB No. 44, however, City believes that statistical information is beneficial to the reader. On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert. For more information on the dissolution of the RDA please see note 19 and note 20. Supplemental Redevelopment Agency Statistical Section City of Palm Desert, California 204 Page 413 of 1128 ·|}111 ·|}111 ·|}74 %&'(10 %&'(10 %&'(10 ·|}111 ·|}74 ·|}111 ·|}111 %&'(10 %&'(10 %&'(10 GERALD FORD DR TA M A R I S K R O W D R OASIS CLUB DRELDORADO DRPITAHAYA ST COOK STPORTOLA AVETOWN CENTERWAYSHA D OW MOUNTAIN DR 42ND AVE FRANK SINATRA DR FRED WARING DR WASHINGTON STWARNER TRLMAGNESIA FALLS DR HOVLEY LN W COOK ST FRED WARING DR EL PASEO HAYSTACK RD HOVLEY LN E PORTOLA AVE PORTOLA AVEVA R N E R R D FRED WARING DR ELDORADODRMILES AVE FRANK SINATRA DR GE RA L D FOR D DR GE R A L D F OR D DR COOK ST COUNTRY CLUB DR PORTOLA AVEVA R N E R R D FRED WARING DR PORTOLA AVE COOK ST MONTEREY AVE HOVLEY LN E VARNER R D ELDORADO DRFRANK SINATRA DR COOK ST HOVLEY LN E HOVLEY LN E MERLE DRPORTOLA AVE MONTEREY AVEDINAH SHORE DR P A IN T ER S P A TH ECLECTICSTMONTEREY AVECORPORATEWAYCALIFORNIA AVE MESA VIEW DR AVENUEOF THESTATES TENNESSEEAVEK A N S A S S T RUTLEDGE WAY SAN PASCUAL AVEPARK VIEW DR FAIRWAY DRSAN PABLO AVEDE ANZA WAY EDGEHILL DR ALESSANDRO DR DEEP CANYON RDCAHUILLA WAY SAN GORGONIO WAY CALLE DELOS CAMPESINOSSAN LUISREY AVECOUNTRY CLUB DR COUNTRY CLUB DR HARRISLN HWY 74H W Y 1 1 1 HWY 111BOB HOPE DRBOB HOPE DRWASHINGTON ST Project Area No. 2 Project Area No. 3 ·|}111 ·|}111 ·|}74 %&'(10 %&'(10 %&'(10 ·|}111 ·|}74 ·|}111 ·|}111 %&'(10 %&'(10 %&'(10 GERALD FORD DR TA M A R I S K R O W D R OASIS CLUB DRELDORADO DRPITAHAYA ST COOK STPORTOLA AVETOWN CENTERWAYSHA D OW MOUNTAIN DR 42ND AVE FRANK SINATRA DR FRED WARING DR WASHINGTON STWARNER TRLMAGNESIA FALLS DR HOVLEY LN W COOK ST FRED WARING DR EL PASEO HAYSTACK RD HOVLEY LN E PORTOLA AVE PORTOLA AVEVA R N E R R D FRED WARING DR ELDORADODRMILES AVE FRANK SINATRA DR GE RA L D FOR D DR GE R A L D F OR D DR COOK ST COUNTRY CLUB DR PORTOLA AVEVA R N E R R D FRED WARING DR PORTOLA AVE COOK ST MONTEREY AVE HOVLEY LN E VARNER R D ELDORADO DRFRANK SINATRA DR COOK ST HOVLEY LN E HOVLEY LN E MERLE DRPORTOLA AVE MONTEREY AVEDINAH SHORE DR P A IN T ER S P A TH ECLECTICSTMONTEREY AVECORPORATEWAYCALIFORNIA AVE MESA VIEW DR AVENUEOF THESTATES TENNESSEEAVEK A N S A S S T RUTLEDGE WAY SAN PASCUAL AVEPARK VIEW DR FAIRWAY DRSAN PABLO AVEDE ANZA WAY EDGEHILL DR ALESSANDRO DR DEEP CANYON RDCAHUILLA WAY SAN GORGONIO WAY CALLE DELOS CAMPESINOSSAN LUISREY AVECOUNTRY CLUB DR COUNTRY CLUB DR HARRISLN HWY 74H W Y 1 1 1 HWY 111BOB HOPE DRBOB HOPE DRWASHINGTON ST Project Area No. 2 Project Area No. 3 Date: 1/2010 Redevelopment Agency Project Areas IArea 1 - Original (1975) Area 1 - Added Territory (1982) Area 2 Area 3 Area 4 City Boundary205 Page 414 of 1128 City of Palm Desert Redevelopment Agency Tax Allocation Bond Issue Information June 30, 2023 DESCRIPTION $15,745,000 Tax Allocation Revenue Bond Years 30 Bond Issue Date 03/26/03 Final Maturity Date 08/01/33 Highest Interest Rate 5.00% Bond Issue Amount 15,745,000$ Outstanding Bond Amount 15,745,000$ Call Premium 1 - 2.00% Bond Insurer MBIA Reserve Requirement (1)1,574,500 Reserve Balance (1)(1) Called Bonds -$ Principal Due 23/24 910,000 Interest Due 23/24 729,631 Arbritage Yield Rate 4.9502% Arbritage-Amount Owed - Arbritage Five Year Due Date:03/26/28 DESCRIPTION Non-Housing Tax Allocation Bond (Exempt)1 Non-Housing Tax Allocation Bond (Taxable)2 Years 13 24 Bond Issue Date 01/31/17 01/31/17 Final Maturity Date 10/01/30 10/01/41 Highest Interest Rate 5.000% 4.250% Bond Issue Amount 52,390,000$ 140,130,000$ Outstanding Bond Amount 36,405,000$ 96,345,000$ Call Premium 0.00%0.00% Bond Insurer BAM BAM Reserve Requirement (1)5,840,397 9,027,545 Reserve Balance (1)(1) (1) Called Bonds -$ -$ Principal Due 23/24 715,000 11,675,000 Interest Due 23/24 1,802,375 3,422,400 Arbritage Yield Rate 3.659%3.659% Arbritage-Amount Owed - - Arbritage Five Year Due Date:01/31/27 01/31/27 DESCRIPTION Housing Tax Allocation Bond (Exempt)3 Housing Tax Allocation Bond (Taxable)4 Years 14 6 Bond Issue Date 01/31/17 01/31/17 Final Maturity Date 10/01/31 10/01/23 Highest Interest Rate 5.000%3.000% Bond Issue Amount 7,365,000$ 45,815,000$ Outstanding Bond Amount 5,025,000$ 6,195,000$ Call Premium 0.00%0.00% Bond Insurer BAM BAM Reserve Requirement (1)687,519 4,581,500 Reserve Balance (1)(1) (1) Called Bonds -$ -$ Principal Due 23/24 455,000 6,195,000 Interest Due 23/24 216,144 92,925 Arbritage Yield Rate 2.907%2.907% Arbritage-Amount Owed - - Arbritage Five Year Due Date:01/31/27 01/31/27 (1) A surety bond was issued by MBIA Insurance, future reserve balance's will be zero. 1 Refunded PA 1-4 tax exempt portion of bonds ($22.07M, $19M, $24.945M, $62.3M, $17.31M, $67.6M, $4.745M, $15.05M, $11.02M, $15.695M, and $19.2M) 2 Refunded PA 1-4 taxable portion of bonds ($22.07M, $19M, $24.945M, $62.3M, $17.31M, $67.6M, $4.745M, $15.05M, $11.02M, $15.695M, and $19.2M) 3 Refunded Housing tax exempt portion of bonds (12.1M and $86.155M) 4 Refunded Housing taxable portion of bonds (12.1M and $86.155M) Source: City of Palm Desert and Successor Agency to the Palm Desert Redevelopment Agency 206 Page 415 of 1128 City of Palm Desert Historical Tax Increment/ Redevelopment Property Tax Trust Fund Summary All Project Areas Project Area No. 1 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 Gross Tax Increment 51,298,203 53,437,088 56,610,029 58,222,677 59,842,517 62,844,689 64,495,840 68,597,410 70,656,513 77,499,942 Less: Housing Set-Aside*10,259,641 10,687,418 11,322,006 11,644,535 11,968,503 12,568,938 12,899,168 13,719,482 14,131,303 15,499,988 SB 2557 673,261 686,944 629,449 725,403 662,238 594,754 570,820 858,150 1,503,453 1,246,470 Gross Pass-Throughs 20,111,377 21,241,903 22,961,604 25,052,727 22,919,420 25,953,291 26,949,281 28,676,151 29,944,830 33,357,702 Net Tax Increment 20,253,925 20,820,823 21,696,970 20,800,012 24,292,356 23,727,706 24,076,571 25,343,627 25,076,927 27,395,781 RPTTF Amount Deposited 25,090,381 26,530,801 24,696,424 25,131,004 19,923,194 20,331,658 21,672,933 21,069,258 16,915,008 14,831,440 Project Area No. 2 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 Gross Tax Increment 13,556,184 15,232,096 16,232,329 16,302,895 16,916,067 17,466,255 18,503,456 19,553,601 19,897,195 21,078,916 Less: Housing Set-Aside*2,711,237 3,046,419 3,246,466 3,260,579 3,383,213 3,493,251 3,700,691 3,910,720 3,979,439 4,215,783 SB 2557 179,214 192,900 180,457 202,348 187,481 165,500 172,557 243,191 188,413 339,023 Gross Pass-Throughs 4,967,602 5,665,961 6,078,194 6,103,481 6,372,798 6,609,645 7,125,321 7,569,060 7,672,621 8,741,803 Net Tax Increment 5,698,132 6,326,816 6,727,213 6,736,487 6,972,575 7,146,063 7,504,887 7,830,630 8,056,722 7,782,307 RPTTF Amount Deposited 7,017,531 5,441,721 5,547,427 5,887,814 5,516,674 5,629,776 6,106,095 6,005,764 4,763,343 4,033,947 Project Area No. 3 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 Gross Tax Increment 3,760,421 3,754,999 4,039,902 4,360,574 4,364,606 4,487,719 4,653,982 4,947,578 5,015,404 5,230,337 Less: Housing Set-Aside*752,084 751,000 807,980 872,115 872,921 897,544 930,796 989,516 1,003,081 1,046,067 SB 2557 49,871 48,901 45,175 52,745 8,947 42,853 41,139 62,062 47,593 84,122 Gross Pass-Throughs 1,377,700 1,371,786 1,510,219 1,656,158 1,662,390 1,730,228 1,813,552 1,937,004 1,985,858 2,179,024 Net Tax Increment 1,580,766 1,583,312 1,676,528 1,779,556 1,820,347 1,817,094 1,868,494 1,958,996 1,978,872 1,921,124 RPTTF Amount Deposited 1,357,678 1,237,930 1,290,623 1,295,156 1,422,709 1,451,877 1,563,906 1,519,617 1,200,676 1,000,948 Project Area No. 4 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 Gross Tax Increment 11,941,800 13,057,891 13,889,272 14,287,533 14,685,301 15,251,204 15,776,294 16,815,458 17,592,461 18,995,874 Less: Housing Set-Aside*2,388,360 2,611,578 2,777,854 2,857,507 2,937,060 3,050,241 3,155,259 3,363,092 3,518,492 3,799,175 SB 2557 156,818 166,634 154,976 178,812 162,715 145,017 139,433 210,710 166,282 305,520 Gross Pass-Throughs 7,901,830 8,381,422 8,866,804 9,433,947 9,943,062 10,454,725 8,434,713 11,405,344 12,185,263 13,800,057 Net Tax Increment 1,494,792 1,898,257 2,089,637 1,817,267 1,642,464 1,601,222 4,046,890 1,836,312 1,722,424 1,091,122 RPTTF Amount Deposited 3,675,440 3,071,966 2,443,507 2,610,660 4,834,978 4,934,105 5,301,405 5,164,761 4,211,595 3,635,308 *For calculation purposes only - No requirement to deposit Housing Set Aside post Redevelopment Dissolution. 207 Page 416 of 1128 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN 208 Page 417 of 1128 City of Palm Desert 73510 FRED WARING DRIVE PALM DESERT, CA 92260 www.palmdesert.gov 209 Page 418 of 1128 1611 E. Fourth Street, Suite 200 Santa Ana, CA 92701 (714) 569-1000 203 N. Brea Blvd, Suite 203 Brea, CA 92821 (714) 672-0022 21 Waterway Avenue, Suite 30089 The Woodlands, TX 77380 (936) 828-4587 2151 River Plaza Dr., Suite 150 Sacramento, CA 95833 (916) 503-9691 24422 Avenida de la Carlota, Suite 275 Laguna Hills, CA 92653 (949) 829-8299 www.lslcpas.com January 30, 2024 To the Honorable Mayor and Members of the City Council City of Palm Desert, California We have audited the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Palm Desert, California (the “City”) for the year ended June 30, 2023. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and, Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated January 30, 2024. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Matters Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. As described in Note 1 to the financial statements, the City changed accounting policies related to conduit debt obligations, subscription-based information technology arrangements, and public-private and public-public partnerships and availability payment arrangements, and by adopting Statement of Governmental Accounting Standards (GASB Statement) Nos. 91, 94, and 96, in fiscal year 2022-2023. Accordingly, the cumulative effect of the accounting change as of the beginning of the year is reported in the Governmental and Enterprise statements. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were: Management’s estimates of the net pension liability and net other postemployment benefits liability are based on actuarial valuation estimates. We evaluated the methods, assumptions, and data used to develop the actuarial valuation estimates in determining that they are reasonable in relation to the financial statements taken as a whole. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Page 419 of 1128 To the Honorable Mayor and Members of the City Council City of Palm Desert, California Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. The attached schedule summarizes uncorrected misstatements of the financial statements. Management has determined that their effects are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. The uncorrected misstatements or the matters underlying them could potentially cause future period financial statements to be materially misstated, even though, in our judgment, such uncorrected misstatements are immaterial to the financial statements under audit. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated January 30, 2024. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters We applied certain limited procedures to management’s discussion and analysis, the budgetary comparison schedules for the General Fund and the major special revenue funds, and the required pension and other postemployment benefits schedules, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the combining and individual fund financial statements and schedules which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary Page 420 of 1128 To the Honorable Mayor and Members of the City Council City of Palm Desert, California information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on other information included in the annual report which is comprised of the introductory and statistical sections, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Future GASB Pronouncements The following Government Accounting Standards Board (GASB) pronouncements will be effective for the following fiscal years’ audits and should be reviewed for proper implementation by management: Fiscal Year 2023-2024 GASB Statement No. 99, Omnibus 2022. Fiscal Year 2024-2025 GASB Statement No. 101, Compensated Absences. Future Projects Comprehensive Project, Financial Reporting Model. Comprehensive Project, Revenue and Expense Recognition. Major Project, Going Concern Uncertainties and Severe Financial Stress. Major Project, Infrastructure Assets. Practice Issue, Classification of Nonfinancial Assets. Practice Issue, Risks and Uncertainties Disclosures. Pre-Agenda Research Activities, Subsequent Events . Restriction on Use This information is intended solely for the information and use of the City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, Brea, California Page 421 of 1128 To the Honorable Mayor and Members of the City Council City of Palm Desert, California ATTACHMENT Summary of Unadjusted Audit Differences Name of Governmental Unit: City of Palm Desert Date of Combined Balance Sheet: June 30, 2023 Opinion Unit, Fund Type or Fund: General Fund Unadjusted Audit Differences Cause Fiscal year 2022 reimbursements from SARDA recognized in fiscal year 2023 Improper cutoff 364,000$ Understated beginning fund balance Improper cutoff (364,000) Cumulative effect (before effect of prior year differences)- Effect of unadjusted audit difference - prior year - Cumulative effect (after effect of prior year differences)-$ Current Year Over (Under) Revenues and Expenditures/Expenses and Changes in Fund Balance/Equity Page 422 of 1128 1611 E. Fourth Street, Suite 200 Santa Ana, CA 92701 (714) 569-1000 203 N. Brea Blvd, Suite 203 Brea, CA 92821 (714) 672-0022 21 Waterway Avenue, Suite 30089 The Woodlands, TX 77380 (936) 828-4587 2151 River Plaza Dr., Suite 150 Sacramento, CA 95833 (916) 503-9691 24422 Avenida de la Carlota, Suite 275 Laguna Hills, CA 92653 (949) 829-8299 www.lslcpas.com INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and Members of the City Council City of Palm Desert, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of The City of Palm Desert, California (the “City”), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated January 30, 2024. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Page 423 of 1128 To the Honorable Mayor and Members of the City Council City of Palm Desert, California Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Brea, California January 30, 2024 Page 424 of 1128 CITY OF PALM DESERT FISCAL YEAR 2022-2023 APPROPRIATIONS LIMIT CALCULATION Article XIII B of the California Constitution requires adoption of an annual appropriation limit. The original base year limit was adopted in FY 1978-79 and has been adjusted annually for increase by a factor comprised of the percentage change in population combined with either the percentage change in California per capita personal income or the percentage change in local assessment roll due to the addition of local nonresidential new construction. The changes in the local assessment roll due to additional local nonresidential new construction for current and prior periods have not been available from the County Assessor's office. On November 1988, voters approved Proposition R which increased the limit to $25,000,000. It expired in November 1992. The FY 1993-94 limit was calculated with prior years re-calculated to reflect the expiration of the 25,000,000 limit. AMOUNT SOURCE A.2021-22 APPROPRIATION LIMIT 154,083,536 PRIOR YEAR'S CALCULATION B.ADJUSTMENT FACTORS 1.POPULATION % POPULATION % CHANGE 0.42 STATE DEPT OF FINANCE POPULATION CONVERTED TO RATIO (0.42+100)/100 1.0042 CALCULATED 2.INFLATION % USING % CHANGES IN CALIF PER CAPITA PERSONAL INCOME PER CAPITA % CHANGE 7.55 STATE DEPT OF FINANCE PER CAPITA CONVERTED TO RATIO (7.55+100)/100 1.0755 CALCULATED 3.CALCULATION OF FACTOR FOR FY 22-23 1.0800 B1*B2 C.2022-23 APPROPRIATIONS LIMIT BEFORE ADJUSTMENTS 166,412,854 B3*A D.OTHER ADJUSTMENTS 0 CALCULATED E.2022-2023 APPROPRIATIONS LIMIT 166,412,854 C+D F.APPROPRIATIONS SUBJECT TO LIMIT 58,056,645 CALCULATED G.OVER/(UNDER) LIMIT (108,356,209)F-E Page 173 Page 425 of 1128 Page 426 of 1128 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 15, 2024 PREPARED BY: Liberty Urban, Deputy Director of Finance REQUEST: RECEIVE AND FILE THE INDEPENDENT ACCOUNTANTS’ REPORT ON AGREED-UPON PROCEDURES PERFORMED ON THE MEASURE A TRANSPORTATION FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2023 RECOMMENDATION: Receive and file the Independent Accountants’ Report on Agreed -Upon Procedures Performed on the Measure A Transportation Fund for the fiscal year ended June 30, 2023. BACKGROUND/ANALYSIS: The Measure A fund is a special revenue fund that was created to keep track of funds received by the Riverside County Transportation Commission. In 1988, Riverside County voters approved a half cent sales tax, known as Measure A, to fund a variety of highway improvements, local streets and roads maintenance, commuter assistance and specialized transit projects. Conrad LLP performed the procedures that were agreed to by the Riverside County Transportation Commission, Riverside, California (RCTC) solely to assist RCTC with respect to an evaluation of the City of Palm Desert’s Measure A Transportation Fund and degree of the City’s compliance with RCTC requirements for the year ended June 30, 2023. The agreed-upon procedures report issued by Conrad LLP found the City in compliance with its Maintenance of Effort (MOE) requirements but noted an accumulated excess fund balance of $6.9 million from prior year revenues. The City has budgeted $19.1 million in Measure A expenditures in Fiscal Year 2023-24, which are anticipated to draw down the $6.9 million excess along with $12.2 million in additional accumulated fund balance. Staff requests that the City Council receive and file the Independent Accountants’ Report on Agreed-Upon Procedures Performed on the Measure A Transportation Fund for the fiscal year ended June 30, 2023. Legal Review: This report has been reviewed by the City Attorney’s office. Appointed Body Recommendation: The Finance Committee received the Independent Accountants’ Report at their meeting on January 22, 2024, and made a recommendation to receive and file the report as presented. Page 427 of 1128 City of Palm Desert FY22/23 Measure A Agreed-Upon Procedures Report Page 2 of 2 FINANCIAL IMPACT: There is no fiscal impact associated with this action. ATTACHMENT: Independent Accountants’ Report on Agreed-Upon Procedures Page 428 of 1128 Attachment 1 Page 429 of 1128 Page 430 of 1128 Page 431 of 1128 Page 432 of 1128 Page 433 of 1128 Page 434 of 1128 Page 435 of 1128 Page 436 of 1128 Page 437 of 1128 Page 438 of 1128 Page 1 of 1 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 15, 2024 PREPARED BY: Ryan Gayler, Capital Projects Manager REQUEST: ACCEPT CONTRACT NO. C45240 AS COMPLETE FOR THE FRED WARING DRIVE STREET IMPROVEMENT PROJECT (PROJECT NO. CST00022) RECOMMENDATION: 1. Accept Contract No. C45240 with Matich Corporation of San Bernadino, California, for the Fred Waring Drive Street Rehabilitation Project as complete and authorize the City Clerk to file the Notice of Completion (Project No. CST00022) 2. Authorize the Mayor to execute and the City Clerk to file the Notice of Completion. BACKGROUND/ANALYSIS: On July 13, 2023, the City Council awarded the subject contract in the amount of $3,057,420 to Matich Construction for the Fred Waring Drive Street Rehabilitation Project. The project paved a six-inch section of new asphalt from Highway 111 to Monterey Avenue , as well as repaving a damaged lane on Monterey Avenue south of Fred Waring Drive. The rehabilitation enabled the ride quality to be improved by removing several dips and bumps in the street. In addition, the project improved pedestrian facilities, bringing them up to ADA standards, and repaired the existing storm drain line in the street. The total cost of construction was $3,004,473.79. The contract for the project included an early completion incentive. The contractor completed the project thirteen days prior to the contract completion date entitling them to an additional $260,000. Staff has inspected the work performed by the contractor and has found the work to be complete and in accordance with the contract requirements. With the early completion incentive, the total project cost was $3,264,473.79. Legal Review: This report has been reviewed by the City Attorney’s office. FINANCIAL IMPACT: There is no direct financial impact associated with this action. ATTACHMENTS: 1. Notice of Completion 2. Vicinity Map Page 439 of 1128 Page 440 of 1128 To be recorded with the Riverside County Recorder on or within 15 days after completion and acceptance by the City Council. NO RECORDING FEE PER SECTION 6103 OF THE GOVERNMENT CODE. APN 000-000-000 R/W NOTICE OF COMPLETION (Cal. Civ. Code § 9200 et seq. – Public Works) NOTICE IS HEREBY GIVEN: 1. That the interest or estate stated in paragraph 3 herein in the real property herein described is SOLELY OWNED by the CITY OF PALM DESERT, A MUNICIPAL CORPORATION, a political subdivision of the State of California, and whose address is 73-510 FRED WARING DRIVE, PALM DESERT, CALIFORNIA, 92260. 2. That the full name and address of the owner of said interest or estate is set forth in the preceding paragraph. 3. That the nature of the title of the stated owner, as set forth in paragraph 1, is FEE. 4. That on the 15th day of February, 2024 work of improvement described as the Fred Waring Drive Street Improvement Project, Project No. CST00022 Contract No. C45240, on the real property herein described was completed. 5. That the name of the original contractor, if any, for said work of improvement was: Matich Corporation. 6. That the real property herein referred to is situated in the City of Palm Desert, County of Riverside, State of California, and is described as (Citywide) 73-510 Fred Waring Drive, Palm Desert, CA 92260. CITY OF PALM DESERT A MUNICIPAL CORPORATION Date: By: Karina Quintanilla, Mayor When recorded, return to: Office of the City Clerk City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 VERIFICATION I, Anthony J. Mejia, City Clerk of the City of Palm Desert, am authorized to execute and file this Notice of Completion with the County Recorder of the County of Riverside on behalf of the City of Palm Desert. I have read the Notice of Completion and know the contents thereof; the same is true of my own knowledge. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Executed on , ,20 , at, California. (Date of signature) (City where signed) __________________________________________________ (Personal signature of the individual who is swearing that the contents of the notice of completion are true) Rev. November 2023 Page 441 of 1128 Page 442 of 1128 Page 443 of 1128 Page 444 of 1128 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 15, 2024 PREPARED BY: Shelby Goodwin, Special Events Coordinator REQUEST: APPROVE SPECIAL EVENT PREPAID EXPENDITURES FOR FISCAL YEAR 2024/25 RECOMMENDATION: 1. Approve prepaid expenditures in an amount not to exceed $130,000 from the Fiscal Year 2024/25 Budget for production of the 202 4 Independence Day Celebration and October Concerts in the Park Series. 2. Authorize the City Manager to execute vendor contracts associated with production of the events. BACKGROUND/ANALYSIS: For over three (3) decades the City of Palm Desert has produced a large -scale Independence Day Celebration, which attracts over 10,000 spectators to Palm Desert Civic Center Park each year. For most of this time, the annual fireworks display has been provi ded without incident by Pyro Spectaculars, one of the most reputable pyrotechnics companies in the United States and which has received high praise every year from the Riverside County Fire Marshal’s office. In accordance with the City’s purchasing policy, staff plans to enter a three (3)-year contract with Pyro Spectaculars, contingent on annual budget approval, with a one (1)-year option to extend for a total amount of $155,500 ($150,500 for three displays plus ancillary costs not to exceed $5,000 for permits required to be paid by vendor to the Riverside County Fire Marshal’s Office). The total cost quoted for the 2024 fireworks display is $48,920 which requires a $24,920.00 deposit paid by the City by March 4, 2024. Additional festivities for this event include food trucks, a variety of vendors, children’s activities, a color guard presentation, and live music followed by the 20-minute fireworks display synchronized to patriotic music simulcast on local radio stations. Anticipated expenditures for the celebration, some of which require contracting and payment prior to July 1, 2024, include: Professional sound and lighting services in conjunction with the concert Two (2) live onsite radio remotes Radio promotion Shuttle services to transport attendees between The Gardens on El Paseo and the Civic Center Park Event insurance Health Department and Fire Marshal permit fees Golf cart rentals Two-way radios for staff and agencies involved to communicate during the event Page 445 of 1128 City of Palm Desert APPROVE SPECIAL EVENT PREPAID EXPENDITURES FOR FISCAL YEAR 2024/25 Page 2 of 2 Police Services Other related expenditures Concert in the Parks The City produces a Concert in the Park Series every Thursday evening in May and October. The October 2024 Concerts in the Park Series includes a fifth Thursday, which happens to fall on Halloween. To ensure booking of top -notch entertainment for the evening, staff would like to contract with a band prior to July 1, 2024. Legal Review: This report has been reviewed by the City Attorney’s office. Strategic Plan: Preapproval of FY 2024/2025 event expenditures would help address the following priorities as specified in the 2013-2033 Strategic Plan, Envision Palm Desert – Forward Together: Economic Development Priority 3: Create and attract entertainment and events to enhance and expand the Palm Desert economy and lifestyle. Tourism and Marketing Priority 2: Grow existing events and develop new events to enhance the desirability of Palm Desert as a year-round destination. FINANCIAL IMPACT: Funding for the 2024 Independence Day Celebration has increased from $80,000 to $120,000 from 2023 due to inclusion of both public safety services and Fire Marshal permit fees (separate from those paid by the vendor), both of which were paid for from the City’s Public Safety Budget in previous years, as well as general inflation. Following is an estimated breakdown for the event moving forward: 2024 Independence Day Celebration Additional $40,000 Police Services $20,000 Fire Marshal Permits $10,000 General Inflation $10,000 The advance requested to contract with a band for the October 31, 2024, concert is $10,000. Additional funds for the 2024 October Concerts in the Park Series will be requested as part of the FY 2024/2025 Budget. Funding for these two (2) items in the amount of $130,000 will be included as part of the anticipated FY 2024/2025 Budget City Produced Events Account No. 1104416-4306101. ATTACHMENT: Pyro Spectaculars Proposal Page 446 of 1128 Page 447 of 1128 Page 448 of 1128 Page 449 of 1128 Page 450 of 1128 Page 451 of 1128 Page 452 of 1128 Page 453 of 1128 Page 454 of 1128 Page 455 of 1128 Page 456 of 1128 Page 457 of 1128 Page 458 of 1128 Page 1 of 1 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 15, 2024 PREPARED BY: Chris Escobedo, Assistant City Manager REQUEST: RECEIVE AND FILE THE 2024 WORK PLAN FOR THE PUBLIC SAFETY COMMITTEE RECOMMENDATION: Receive and file the 2024 Annual Work Plan for the Public Safety Committee. BACKGROUND/ANALYSIS: At its December 12, 2023, meeting, the Public Safety Committee (PSC) discussed priorities and came to consensus on its 2024 workplan. On January 9, 2024, the PSC voted unanimously to approve the workplan and created sub -committees to assist staff and public safety partners on reviewing and working on the three priority areas. Work Plan • Traffic Safety – Review traffic enforcement programs, receiving updates, and providing input on traffic calming for related traffic Capital Improvement Projects. PSC Sub-committee members: Stephen Nelson, Frank Taylor and Kevin Wahlstrom. • Public Safety Budget – Review the police and fire budget, including a review of fire and police calls for service, staffing levels, and response times. Provide recommendations for the PSC and Council’s consideration. Also, to include monthly updates on the City’s Automated License Plate Recognition Program. PSC Sub-committee members: Terry Kramer, Douglas Luhring and Frank Taylor • Community-Oriented Policing – Receive updates on crime prevention programs, understand the current programs in place, and discuss the need for public service announcements. PSC Sub-committee members: Jeff Alley, Joseph Butts, and Kevin Wahlstrom Legal Review: This report has been reviewed by the City Attorney’s office. FINANCIAL IMPACT: While none of these have a direct cost outside of staff time, should recommendations from the PSC advance to City Council, staff will provide a financial impact analysis. Page 459 of 1128 Page 460 of 1128 Page 1 of 4 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 15, 2024 PREPARED BY: Randy Chavez, Deputy Director of Public Works REQUEST: PURCHASE OF A STREET SWEEPER TO IMPROVE CITYWIDE ROADWAY AND PARKING LOT MAINTENANCE RECOMMENDATION: 1. Authorize the purchase of an Elgin Broom Bear Street Sweeper from Haaker Equipment Company from La Verne, California, in the amount of $454,194.27. 2. Authorize the Director of Finance to set aside a contingency of $25,000 for any unforeseen fees and ancillary equipment. 3. Authorize the Finance Director to appropriate funds in the amount $479,194.27 from unobligated Equipment Replacement Fund to Account No. 530431 0-4403000. 4. Authorize City Manager or designee to approve the use of the contingency and any documents necessary to effectuate actions taken herewith. BACKGROUND/ANALYSIS: Summary: Over recent years, Palm Desert has received numerous occurrences of windborne sand events and a corresponding rise in demands for improved roadway and parking lot sweeping maintenance. As a result, staff reviewed its street sweeping operations , including the current outsourced level of service, and best practices. After review, staff recommends purchasing a diesel street sweeper, which is readily available today (no lead time) with approval of this item. Issue: Windborne sand events have been increasing over the years, leading to an increase in requests for street sweeping services. Consequently, the City's street sweeping operations have been unable to keep up with desired service levels. The necessity for maintaining clean and debris - free streets has emerged as a priority for the City’s ongoing development and maintenance efforts, as well as the need for continual emergency preparation. Existing Operations: To effectively remove windborne sand from roadways, a combination of proactive measures and responsive cleaning techniques are employed. The City implements regular street sweeping, dust control measures, vegetation plantation, and barrier installation. Contracted sweeping services include: Page 461 of 1128 City of Palm Desert Authorize Purchase of Street Sweeper Page 2 of 4 Regular Street Sweeping Services (Bi-weekly): The City contracts with a vendor for arterial and parking lot sweeping for $230,000 annually until June 30, 2028. This covers all costs for bi-weekly sweeping, and the vendor's performance has been satisfactory. CVAG Sweeping Services (Bi-weekly): CVAG's sweeping vendor, funded through AB2766, sweeps major arterials in Palm Desert (Attachment A). However, they fall short of the City's standards due to traffic volume, sand accumulation, and other reasons. Despite outreach, issues persist. The City allocates $60,000 annually for this service . Staff have reached out for quotes for additional sweepi ng and are awaiting a response. Additional Sweeping Services (As-needed): The City contracts with its vendor for extra services during severe weather. The City recently spent $22,000 on rental equipment in June and July 2023 and invested $100,000 post-Hilary Storm. Securing a street sweeper during emergencies took around 30 days in the latest event, impacting prompt response. Street Sweeper Cost Analysis Description Annual Cost Rented Street Sweeper ($14,000 / month): $168,000 Major One-time Event (per year): $50,000 Annual Rental Total: $218,000 Average Lifespan (4 to 8 years): 5 Rental Cost / Additional Emergency Sweeping (5 years): $1,090,000 Purchase New Street Sweeper: $480,000 Equipment Comparison: Staff contacted Haaker Equipment Company to request quotes for different equipment types. This company provides pricing pursuant to a cooperative purchasing agreement through Sourcewell. By utilizing this cooperative pricing schedule, the City is assured of the best pricing on quality products. Accordingly, staff dispensed further bidding pursuant to Palm Desert Municipal Code Section 3.30.160(E). The table below assumes purchasing a mechanical broom street sweeper with the capacity of over four-cubic yards, which aligns with best practices. The table is also categorized by power source, delivery time and contract price. Please note that the contract prices cover direct costs (e.g., equipment and initial training) but not indirect costs (e.g., maintenance and spare parts). Equipment Comparison Power Source Delivery Time Contract Price Electric 12 Months $ 974,850.89 CNG 12-18 Months $ 573,395.94 Diesel Immediately $ 454,194.27 Page 462 of 1128 City of Palm Desert Authorize Purchase of Street Sweeper Page 3 of 4 Equipment Comparison: Staff recommends the purchase of an Elgin Broom Bear Street Sweeper (diesel) from Haaker Equipment Company in an amount totaling $454,194.27. The recommendation also incorporates a contingency of $25,000 for additional brooms and unforeseen fees. The recommendation of this model is based upon several factors including: Immediate Availability: The street sweeper is readily available for purchase with no lead time, ensuring swift deployment to address occurrences of windborne sand events. In fact, this is the last remaining diesel street sweeper inventory, and newer model diesel street sweepers are prohibited for municipal fleet sale in California beginning 2024. Reduced Upfront Expenses: As displayed, the diesel street sweeper has significantly lower upfront expenses compared to electric and CNG alternatives. Reliability in Emergency Situations: In emergency situations, a diesel-powered sweeper is more reliable than electric and CNG alternatives. It can operate independently during grid failures or prolonged operations, ensuring continued functionality. Proven Suitability for Desert Communities: Mechanical broom sweepers are suited for desert communities like Palm Desert. They are designed to effectively clean and remove sand and debris, addressing the unique challenges posed by windborne sand events. Legal Review: This report has been reviewed by the City Attorney’s office. FINANCIAL IMPACT: The approved Capital Improvement Project (CIP) List for Fiscal Year 2023/24 includes a total of $480,000 for the purchase of various equipment as follows: Account / Equipment Budget Actual Cost Estimated Cost Balance EV Carpools $150,000 Pending $100,000 Graffiti Truck $110,000 Pending $150,000 Concrete Truck $100,000 $124,138.36 Dump Trailer $20,000 $15,201.65 Mini Excavator $60,000 $54,537.01 Utility Golf Cart $40,000 $33,560.82 Cost Total $227,437.84 $250,000 FY 23/24 Total $480,000 $477,437.84 $2,562.16 Street Sweeper Appropriation $479,194.27 Account Total $481,756.43 Staff requests an appropriation to Account No. 5304310-4403000 to cover the cost of the sweeper. Page 463 of 1128 City of Palm Desert Authorize Purchase of Street Sweeper Page 4 of 4 Appropriation Necessary Unit Price $428,712.00 Government Discount (Sourcewell) ($ 7,186.00) Sales Tax (7.75%) $ 32,668.27 Total Purchase Price: $454,194.27 Contingency $ 25,000.00 Total Appropriation Request: $479,194.27 ATTACHMENTS: 1. CVAG Vendor Routes (Bi-weekly) 2. Product Information 3. Vendor Quote Page 464 of 1128 RAMON MONTEREYPORTOLAFRED WARING JEFFERSONCOUNTRY CLUBDA VALLDINAH SHORE MONTEREY AVETOWN CENTERGERALD FORD DR COOK STDEEP CANYON RDSAN PABLOELDORADO DRELKHORNEL PASEO ELDORADO DRGERALD FORD FRANK SINATRA HOVLEY INDIAN WELLS RANCHO MIRAGE LA QUINTA PALM DESERT §¨¦10 }111 Palm DesertIndian Wells Ü 0 1 20.5 Miles Z:\ovizcarra\Street sweeping\Street Sweeping\Sweeping_030816\Street_Sweeping_Coachella_Valley_Map2.mxd3/16/2016 }74 Monday Week 1 Tuesday Week 1 Wednesday Week 1 Friday Week 2 Map 2 Road Network City Boundaries Page 465 of 1128 RAMON MONTEREYPORTOLAFRED WARING COUNTRY CLUBDA VALLDINAH SHORE MONTEREY AVETOWN CENTERGERALD FORD DR COOK STDEEP CANYON RDSAN PABLOELDORADO DRELKHORNEL PASEO ELDORADO DRGERALD FORD FRANK SINATRA HOVLEY INDIAN WELLS RANCHO MIRAGE LA QUINTA PALM DESERT §¨¦10 }111 Palm DesertIndian Wells Ü 0 1 20.5 Miles Z:\ovizcarra\Street sweeping\Street Sweeping\Sweeping_030816\Street_Sweeping_Coachella_Valley_Map2.mxd3/16/2016 }74 Map 2 Special Impact Road Network City Boundaries Friday Week 2 Impact NOTE: NO SPECIAL IMPACTSTREETS IN MAP 1 AREA Page 466 of 1128 Page 467 of 1128 Page 468 of 1128 Page 469 of 1128 Page 470 of 1128 Page 471 of 1128 Page 472 of 1128 Page 473 of 1128 Page 474 of 1128 Page 475 of 1128 Page 476 of 1128 Page 1 of 1 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 15, 2024 PREPARED BY: Shawn Muir, Community Services Manager REQUEST: REAFFIRM APPROVAL OF A CONSERVATION EASEMENT WITH THE COACHELLA VALLEY CONSERVATION COMMISSION FOR LANDS WITHIN THE COACHELLA VALLEY MULTIPLE SPECIES HABITAT CONSERVATION PROGRAM RECOMMENDATION: 1. Reaffirm approval of the Conservation Easement with the Coachella Valley Conservation Commission (CVCC) for lands within the Coachella Valley Multiple Species Habitat Conservation Program (CVMSHCP). 2. Authorize the City Manager to execute the Conservation Easement document. BACKGROUND/ANALYSIS: On August 23, 2012, staff presented a request for approval of a Conservation Easement for approximately 116-acres in south Palm Desert. The recommendation was to direct staff to prepare and execute the Conservation Easement due to the loss of the Redevelopment Agency and the desire to protect properties in the hillsides that were acquired for preservation/open space. The City Council voted 3-2 to approve the Conservation Easement; however, the document was not finalized and signed. Staff was made aware of the need to coordinate with the CVCC and other organizations to finalize and execute the Conservation Easement in August 2022, as no documentation of the recorded easement could be located. Staff worked with CVCC who also coordinated with the various wildlife organizations involved to prepare the Conservation Easement . This easement document has been approved by the Wildlife Agencies as the template for future conservation easements developed under the CVMSHCP. Legal Review: Both the City Attorney and CVCC Legal Counsel have been involved in the development of the Conservation Easement. They have each reviewed and approved the final Conservation Easement document for final execution. FINANCIAL IMPACT: There is no financial impact associated with this action ; however, the City will accurately have the approximately 116-acres covered by the Conservation Easement counted toward the required CVMSHCP contribution. ATTACHMENTS: 1. 2012 Approved Staff Report 2. Conservation Easement Page 477 of 1128 Page 478 of 1128 Page 479 of 1128 Page 480 of 1128 Page 481 of 1128 Page 482 of 1128 Page 483 of 1128 Page 484 of 1128 Page 485 of 1128 Page 486 of 1128 Page 487 of 1128 Page 488 of 1128 Page 489 of 1128 Page 490 of 1128 Page 491 of 1128 Page 492 of 1128 Page 493 of 1128 Page 494 of 1128 Page 495 of 1128 Page 496 of 1128 Page 497 of 1128 Page 498 of 1128 Page 499 of 1128 Page 500 of 1128 Page 501 of 1128 Page 502 of 1128 72500.00001\7726262.5 1 CONSERVATION EASEMENT RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Coachella Valley Conservation Commission 74-199 El Paseo, Suite 100 Palm Desert, CA 92260 ) ) ) ) ) ) ) Space Above Line for Recorder’s Use Only CONSERVATION EASEMENT DEED THIS CONSERVATION EASEMENT DEED is made this ___ day of ________, 2024, by the CITY OF PALM DESERT, a California municipal corporation (“Grantor”), in favor of the COACHELLA VALLEY CONSERVATION COMMISSION, a California Joint Powers Authority, (“Grantee,”) with reference to the following facts: RECITALS A. Grantor is the sole owner in fee simple of certain real property consisting of approximately 116.12 acres in the City of Palm Desert, County of Riverside, State of California, and more particularly described in Exhibit “A” attached hereto and incorporated herein by this reference (the “Property”). B. The Property possesses wildlife and habitat values (collectively, “conservation values”) of great importance to Grantee, the people of the State of California, and the people of the United States; C. The Property provides potential habitat for the Coachella Valley Jerusalem Cricket (Stenopelmatus cahuilaensis) , Desert Tortoise (Gopherus agassizii), Le Conte’s Thrasher (Toxostoma lecontei), Coachella Valley round-tailed ground squirrel, (Spermophilus tereticaudus chlorus), Palm Springs Pocket Mouse (Perognathus longimembris bangsi), Peninsular Bighorn Sheep (Ovis canaciensis nelson) and contains natural communities including sonorant creosote bush scrub; D. The California Department of Fish and Wildlife (“CDFW”) has jurisdiction, pursuant to California Fish and Game Code section 1802 and other laws, over the conservation, protection, and management of fish, wildlife, native plants, and the habitat necessary for biologically sustainable populations of those species; E. The United States Fish & Wildlife Service (“USFWS”) has jurisdiction over the conservation, protection, restoration, enhancement, and management of fish, wildlife, native plants, and habitat necessary for biologically sustainable populations of those species to the extent set forth in the Federal Endangered Species Act, 16 U.S.C. sections 1531, et seq., and other federal laws; Page 503 of 1128 72500.00001\7726262.5 2 F. The Coachella Valley Conservation Commission (“CVCC”) is a California joint powers authority pursuant to Government Code sections 6500-6511 created to implement the Coachella Valley Multiple Species Habitat Conservation Plan/Natural Community Conservation Plan (“MSHCP”) and is a governmental agency qualified to hold conservation easements pursuant to Civil Code section 815.3; G. This Conservation Easement provides mitigation for certain project impacts pursuant to the California Natural Community Conservation Planning Act Permit 2035-2008- 001-06 dated September 9, 2008, issued by CDFW under the authority of California Fish and Game Code sections 2800 et seq. (“NCCP Permit”), and Permit No TE104604-0 dated October 1, 2008, issued by USFWS under the authority of section 10(a)(l)(B) and section 10(a)(2) of the Endangered Species Act of 1973 as amended (FESA) (“Section 10(a) Permit”), and the corresponding MSHCP dated September 2007 and Implementing Agreement, as same may be amended from time to time. The Section l0(a) Permit, the NCCP Permit, the Implementing Agreement, and the MSHCP, and any amendments thereto, are all incorporated herein by this reference. Information regarding these documents may be obtained from USFWS and CDFW, for each respective permit, and from CVCC regarding the Implementing Agreement and the MSHCP. Contact information for USFWS, CDFW, and CVCC is provided in the Notices section of this Conservation Easement Deed. COVENANTS, TERMS, CONDITIONS AND RESTRICTIONS In consideration of the above recitals and mutual covenants, terms, conditions, and restrictions contained herein, and pursuant to United States and California law, including Civil Code sections 815, et seq., Grantor hereby voluntarily grants and conveys to Grantee a Conservation Easement in perpetuity over the Property. 1. Purpose. The purpose of this Conservation Easement is to ensure the Property will be retained forever in a natural condition and to prevent any use of the Property that will impair or interfere with the conservation values of the Property. Grantor intends that this Conservation Easement will confine the use of the Property to such activities, including, without limitation, those involving the preservation and enhancement of native species, their habitat, and natural communities, in a manner consistent with the habitat conservation purposes of this Conservation Easement. 1.1 The term “natural condition,” as referenced in the preceding paragraph and other portions of this Conservation Easement Deed, shall mean the condition of the Property, as it exists at the time this Conservation Easement Deed is executed, as well as future enhancements or changes to the Property that occur directly as a result of in-perpetuity maintenance and management obligations that occur on the Property as described herein. 1.2 Grantor certifies to Grantee that to Grantor’s actual knowledge the only existing improvements on the Property at the time this Deed is executed are the recreational trails and associated trailheads depicted in Exhibit “B” attached hereto and incorporated herein by this reference. Grantor further certifies to Grantee that to Grantor’s actual knowledge there are no previously granted easements existing on the Property that interfere or conflict with the purpose of this Conservation. Easement. Page 504 of 1128 72500.00001\7726262.5 3 1.3 Grantee’s acceptance of this Conservation Easement is expressly conditioned on the receipt from Grantor, prior to recordation, of either (a) a baseline report on the condition of the Property in a form acceptable to Grantee, who will provide 15 business days to CDFW and USFWS for review and comment ahead of Grantee approval, at their sole discretion, or (b) payment of the sum necessary to reimburse Grantee for the cost of obtaining a baseline report as quoted by a contractor approved by Grantee. The baseline report shall be deemed evidence of the natural condition of the Property at the time of the grant of the Conservation Easement. Exhibits to the baseline report shall include (a) an aerial photograph(s) of the Property at an appropriate scale taken as close in time as possible to the date this Conservation Easement is executed; (b) an overlay of the boundaries of the Property on such aerial photograph(s); and (c) on-site color photographs showing the major, distinct natural features of the Property. 2. Grantee’s Rights. To accomplish the purposes of this Conservation Easement, Grantor hereby grants and conveys to Grantee, and to USFWS and CDFW as third-party beneficiaries hereof, or their respective designee(s), all mineral, air, and water rights necessary to protect and to sustain the biological resources of the Property, and all present and future development rights, as well as all of the following rights: (a) To preserve and protect the conservation values of the Property; (b) To enter upon the Property at reasonable times in order to monitor compliance with and to otherwise enforce the terms of this Conservation Easement, and for scientific research and interpretive purposes by Grantee or its designees, provided that Grantee shall not unreasonably interfere with Grantor’s authorized use and quiet enjoyment of the Property; (c) To enter upon the Property at reasonable times to carry out management and monitoring consistent with the conservation goals, monitoring program, and management plans for the MSHCP; (d) To prevent any activity on or use of the Property that is inconsistent with the purposes of this Conservation Easement and the MSHCP and to require the restoration of such areas or features of the Property that may be damaged by any act, failure to act, or any use that is inconsistent with the purposes of this Conservation Easement; and (e) To enforce, by any means, including without limitation injunctive relief, the terms and conditions of this Conservation Easement. 3. Prohibited Uses. Any activity on or use of the Property inconsistent with the purposes of this Conservation Easement is prohibited except as allowed by Grantor and Grantee pursuant to an express written approval. Without limiting the generality of the foregoing, the following uses by Grantor, Grantor’s agents, and third parties, are expressly prohibited: (a) The application of water; the use of fertilizers, pesticides, biocides, herbicides or any agricultural chemical; incompatible fire protection activities; and any and all other activities and uses which may adversely affect the purposes of this Conservation Easement; Page 505 of 1128 72500.00001\7726262.5 4 (b) Use of off-road vehicles and use of any other motorized vehicles except on existing roadways; (c) Grazing or other agricultural activity of any kind; (d) Recreational activities except those specifically authorized on the Property under the MSHCP; (e) Residential, commercial or industrial uses: (f) Any legal or de facto division, subdivision or partitioning of the Property; (g) Construction, reconstruction or placement of any building, billboard or sign, or any other structure or improvement of any kind; (h) Dumping, depositing or accumulation of soil, trash, ashes, refuse, waste, biosolids or any other materials; (i) Planting, introduction or dispersal of non-native or invasive plant or animal species, except as otherwise approved by Grantee; (j) Filling, dumping, excavating, draining, dredging, mining, drilling, removing or exploring for or extraction of minerals, loam, soil, sands, gravel, rocks or other material on or below the surface of the Property, except as necessary to conduct authorized natural or cultural resources research or preservation in consultation with Native American Tribes, State Historic Preservation Office, and other entities/agencies as required by state or federal law; (k) Altering the surface or general topography of the Property, including building of roads except as necessary to conduct authorized natural or cultural resources research or preservation in consultation with Native American Tribes, State Historic Preservation Office, and other entities/agencies as required by state or federal law, or to modify and maintain the recreational trails depicted in Exhibit B as provided for in the MSHCP; (l) Removing, destroying, or cutting of trees, shrubs or other vegetation, except as required by law for fire breaks, maintenance of the existing foot trails depicted in Exhibit B, or prevention or treatment of disease; (m) Manipulating, impounding or altering any natural water course, body of water or water circulation or underground water table on the Property, and activities or uses detrimental to water quality, including but not limited to, degradation or pollution of any surface or subsurface waters; (n) Shining artificial light into the Property; (o) Any activities prohibited under the MSHCP; and Page 506 of 1128 72500.00001\7726262.5 5 (p) Without the prior written consent of Grantee, which Grantee may withhold, transferring, encumbering, selling, leasing, or otherwise separating the mineral, air or water rights for the Property; changing the place or purpose of use of the above and below ground water rights; abandoning or allowing the abandonment of, by action or inaction, any water or water rights, ditch or ditch rights, spring rights, reservoir or storage rights, wells, ground water rights, or other rights in and to the use of water historically used on or otherwise appurtenant to the Property. 4. Grantor’s Duties. To accomplish the purposes of this Conservation Easement, Grantor, its successors and assigns shall: (a) Undertake all reasonable actions to prevent the unlawful entry and trespass by persons whose activities may degrade or harm the conservation values of the Property; (b) Undertake all necessary actions to perfect and defend the rights of the Grantee and third-party beneficiaries identified in section 2 hereunder; (c) Comply with the terms of this Conservation Easement and cooperate with Grantee in the protection of the conservation values; (d) Pursuant to the requirements set out herein, repair and restore damage to the Conservation Easement directly or indirectly caused by Grantor, Grantor’s guests, representatives, employees or agents, and third parties within Grantor’s control; provided, however, Grantor, its successors or assigns shall not engage in any repair or restoration work on the Property without first consulting with Grantee; and (e) Obtain any applicable governmental permits and approvals for any activity or use permitted by this Conservation Easement and conducted by Grantor, and any such activity or use shall be undertaken in accordance with all applicable federal, state, local and administrative agency statutes, ordinances, rules, regulations, orders or requirements. 5. Reserved Rights. Grantor reserves to itself, and to its personal representatives, heirs, successors, and assigns, all rights accruing from its ownership of the Property, including the right to engage in or to permit or invite others to engage in all uses of the Property that are consistent with the purposes of this Conservation Easement. 6. Grantee’s Remedies. USFWS and CDFW, as a third-party beneficiaries under this Conservation Easement, shall have the same rights as Grantee under this section to enforce the terms of this Conservation Easement. If Grantee determines that Grantor is in violation of the terms of this Conservation Easement or that a violation is threatened. Grantee shall give written notice to Grantor, CDFW, and USFWS of such violation and demand in writing the cure of such violation. If Grantor fails to cure the violation within thirty (30) days after receipt of written notice and demand from Grantee, or if the cure reasonably requires more than thirty (30) days to complete and Grantor fails to begin the cure within the 30-day period or fails to continue diligently to complete the cure, Grantee may bring an action at law or in equity in a court of competent jurisdiction to enforce compliance by Grantor with the terms of this Conservation Easement, to recover any damages to which Grantee may be entitled for violation by Grantor of the terms of this Conservation Easement or for any injury to the conservation values of the Page 507 of 1128 72500.00001\7726262.5 6 Property, to enjoin the violation, ex parte as necessary, by temporary or permanent injunction without the necessity of proving either actual damages or the inadequacy of otherwise available legal remedies, or for other equitable relief, including, but not limited to, the restoration of the Property to the condition in which it existed prior to any such violation or injury, Prior to implementation of any remedial or restorative actions, Grantor shall consult with Grantee. Without limiting Grantor’s liability therefor, Grantee may apply any damages recovered to the cost of undertaking any corrective action on the Property. If Grantee, in its sole discretion, determines that circumstances require immediate action to prevent or mitigate damage to the conservation values of the Property, Grantee may pursue its remedies under this section without prior notice to Grantor or without waiting for the period provided for cure to expire. Grantee’s rights under this section apply equally to actual or threatened violations of the terms of this Conservation Easement Deed. Grantor agrees that Grantee’s remedies at law for any violation of the terms of this Conservation Easement Deed are inadequate and that Grantee shall be entitled to the injunctive relief described in this section, both prohibitive and mandatory, in addition to such other relief to which Grantee may be entitled, including specific performance of the terms of this Conservation Easement Deed, without the necessity of proving either actual damages or the inadequacy of otherwise available legal remedies. Grantee’s remedies described in this section shall be cumulative and shall be in addition to all remedies now or hereafter existing at law or in equity, including but not limited to, the remedies set forth in Civil Code sections 815, et seq., inclusive. The failure of Grantee to discover a violation or to take immediate legal action shall not bar Grantee from taking such action at a later time. If at any time in the future Grantor, Grantee, or any successor in interest uses or threatens to use the Property for purposes inconsistent with this Conservation Easement, or Grantee or any successor in interest releases or abandons this Conservation Easement in whole or in part, then, notwithstanding Civil Code section 815.7, the California Attorney General, USFWS, or any entity or individual with a justifiable interest in the preservation of this Conservation Easement has standing as interested parties in any proceeding affecting this Conservation Easement. 6.1 Costs of Enforcement. Any costs incurred by Grantee, where Grantee is the prevailing party, in enforcing the terms of this Conservation Easement against Grantor, including, but not limited to, costs of suit and attorneys’ and experts’ fees, and any costs of restoration necessitated by Grantor’s negligence or breach of this Conservation Easement shall be borne by Grantor. 6.2 Grantee’s Discretion. Enforcement of the terms of this Conservation Easement Deed by Grantee shall be at the discretion of Grantee, and any forbearance by Grantee to exercise its rights under this Conservation Easement Deed in the event of any breach of any term of this Conservation Easement Deed by Grantor shall not be deemed or construed to be a waiver by Grantee of such term or of any subsequent breach of the same or any other term of this Conservation Easement Deed or of any of Grantee’s rights under this Conservation Easement Deed, No delay or omission by Grantee in the exercise of any right or remedy upon any breach by Grantor shall impair such right or remedy or be construed as a waiver. Page 508 of 1128 72500.00001\7726262.5 7 6.3 Acts Beyond Grantor’s Control. Nothing contained in this Conservation Easement Deed shall be construed to entitle Grantee to bring any action against Grantor for any injury to or change in the Property resulting from: (a) any natural cause beyond Grantor’s control, including, without limitation, fire not caused by Grantor, flood, storm, and earth movement, or any prudent action taken by Grantor under emergency conditions to prevent, abate, or mitigate significant injury to the Property resulting from such causes; or (b) acts by Grantee or its employees, directors, officers, agents, contractors, or representatives. 6.4 CDFW and USFWS Right of Enforcement. All rights and remedies conveyed to Grantee under this Conservation Easement Deed shall extend to and are enforceable by CDFW and USFWS. These rights are in addition to, and do not limit, the rights of enforcement under any other applicable permit, agreement or authority, including, but not limited to, the rights of enforcement under the NCCP and Section 10(a) Permits. 7. Access. This Conservation Easement does not convey a general right of access to the public. 8. Costs and Liabilities. Grantor retains all responsibilities and shall bear all costs and liabilities of any kind related to the ownership, operation, upkeep, and maintenance of the Property, Grantor agrees that Grantee shall have no duty or responsibility for the operation or maintenance of the Property, the monitoring of hazardous conditions thereon, or the protection of Grantor, the public or any third parties from risks relating to conditions on the Property. 8.1 Taxes; No Liens. Grantor shall pay before delinquency all taxes, assessments, fees, and charges of whatever description levied on or assessed against the Property by competent authority (collectively “taxes”), including any taxes imposed upon, or incurred as a result of, this Conservation Easement, and shall furnish Grantee with satisfactory evidence of payment upon request. Grantor shall keep Grantee’s interest in the Property free from any liens, including those arising out of any obligations incurred by Grantor or any labor or materials furnished or alleged to have been furnished to or for Grantor at or for use on the Property. 8.2 Hold Harmless. Grantor shall hold harmless, protect and indemnify Grantee, USFWS and CDFW, and their respective directors, officers, employees, agents, contractors, volunteers, and representatives and the heirs, personal representatives, successors and assigns of each of them (each an “Indemnified Party” and, collectively, “Indemnified Parties,”) from and against any and all liabilities, penalties, costs, losses, damages, expenses (including, without limitation, reasonable attorneys’ fees and experts’ fees), causes of action, claims, demands, orders, liens or judgments (each a “Claim” and, collectively, “Claims”), arising from or in any way connected with (a) injury to or the death of any person, or physical damage to any property, resulting from any act, omission, condition, or other matter related to or occurring on or about the Property, regardless of cause, unless due solely to the negligence of the party to be indemnified; (b) Grantor’s obligations hereunder, including but not limited to the obligations specified in the (sub)sections above entitled “Grantor’s Duties,” “Costs and Liabilities,” and “Taxes; No Liens”; and (c) the existence or administration of this Conservation Easement. If any action or proceeding is brought against any of the Indemnified Parties by reason of any such Claim, Grantor shall, at the election of and upon written notice from Grantee, defend such action Page 509 of 1128 72500.00001\7726262.5 8 or proceeding by counsel reasonably acceptable to the Indemnified Party or reimburse Grantee for all charges incurred in defending the action or proceeding. 8.3 Extinguishment. If circumstances arise in the future that render the purposes of this Conservation Easement impossible to accomplish, this Conservation Easement can only be terminated or extinguished, in whole or in part, by judicial proceedings in a court of competent jurisdiction. Grantor shall provide written notice to Grantee, USFWS, and CDFW at least forty- five (45) days prior to taking any action to extinguish this Conservation Easement and prior to extinguishment shall provide a conservation easement at an alternative site to Grantee, or another entity or organization authorized to acquire and hold conservation easements under California Civil Code section 815.3 (or any successor provision then applicable) or the laws of the United States, that has been approved in writing by USFWS and CDFW, or shall provide alternative mitigation acceptable to USFWS and CDFW and determined in writing by USFWS and CDFW to be adequate to mitigate for the impacts to the species covered under the NCCP Permit and Section 10(a) Permit. Any proceeds f r o m e xt i n g ui s hm e nt s h al l b e u s e d in a manner determined in writing by USFWS and CDFW to be consistent with the purposes of this Conservation Easement and Grantor’s mitigation obligations under the NCCP Permit and Section 10(a) Permit. 8.4 Condemnation. (a) This Conservation Easement is a “conservation easement” as defined in California Code of Civil Procedure section 1240.055(a)(1) and constitutes “property appropriated to public use” as defined in California Code of Civil Procedure section 1240.055(a)(3). CDFW and USFWS are public entities that imposed conditions upon issuance of the NCCP Permit and Section 10(a) Permit that were satisfied, in whole or in part, by the creation of this Conservation Easement, as described in California Code of Civil Procedure section 1240.055(a)(3). (b) A person authorized to acquire property for public use by eminent domain shall seek to acquire the Property, if at all, only as provided in California Code of Civil Procedure section 1240.055. The purposes of the Conservation Easement are presumed to be the best and most necessary public use as defined at Code of Civil Procedure section 1240.680, notwithstanding Code of Civil Procedure sections 1240.690 and 1240.700. If any person seeks to acquire the Property for public use, Grantee shall immediately provide written notice to USFWS and CDFW and comply with all obligations of the holder of a conservation easement under California Code of Civil Procedure section 1240.055, as applicable. (c) In the event that the Property is acquired, or authorized to be acquired, under eminent domain by the Federal Government, or any department or agency thereof, the Grantee, within 15 days of receipt of any notice of such acquisition or intent to acquire, shall send a copy of such notice by first-class mail to USFWS and CDFW; and shall notify the person who has acquired or is seeking to acquire the property that CDFW and USFWS, as public entities that imposed conditions upon issuance of the NCCP Permit and Section 10(a) Permit that were satisfied, in whole or in part, by the creation of the Conservation Easement, was sent a copy of the notice pursuant to this paragraph. (d) Grantee shall use any proceeds received from condemnation of the Property in a manner determined by USFWS and CDFW in writing to be consistent with the purposes of this Conservation Easement and Grantor’s mitigation obligations under the NCCP Page 510 of 1128 72500.00001\7726262.5 9 P ermit and Section 10(a) Permit. If the Conservation Easement is condemned, the net proceeds from the condemnation shall also be used in compliance with California Government Code section 65966(j). 9. Assignment by Grantee. This Conservation Easement is transferable, but Grantee or any successor in interest shall give Grantor, USFWS, and CDFW, at least thirty (30) days prior written notice of the transfer. Grantee or any successor in interest may assign its rights and obligations under this Conservation Easement only in favor of an entity or organization authorized to acquire and hold conservation easements pursuant to Civil Code section 815.3 and reasonably acceptable to USFWS and CDFW. Grantee or any successor in interest shall require the assignee to agree in writing that the conservation purposes that this Deed is intended to advance shall continue to be fulfilled by such assignee in accordance with the terms of this Conservation Easement Deed, the NCCP Permit and the Section 10(a) Permit, and shall require the assignee to record the assignment in the county where the Property is located. The failure of Grantee to perform any act provided in this section shall not impair the validity of this Conservation Easement or limit its enforcement in any way. Any transfer under this section is subject to the requirements of the section below entitled “No Merger.” 10. Release or Abandonment. Grantee or any successor in interest shall not release, modify, relinquish or abandon its rights and obligations under this Conservation Easement without the prior written consent of USFWS and CDFW. 11. Subsequent Transfers. Grantor agrees to incorporate the terms of this Conservation Easement Deed in any deed or other legal instrument by which Grantor divests itself of any interest in all or any portion of the Property, including, without limitation, a leasehold interest. Grantor agrees that the deed or other legal instrument shall also incorporate by reference the MSHCP, Implementing Agreement, NCCP Permit, and Section 10(a) Permit and any amendments thereto. Grantor further agrees to give written notice to Grantee, USFWS and CDFW of the intent to transfer any interest in the Property at least thirty (30) days prior to the date of such transfer. Grantee, USFWS and CDFW shall have the right to prevent subsequent transfers in which prospective subsequent claimants or transferees are not given notice of the covenants, terms, conditions and restrictions of this Conservation Easement Deed. The failure of Grantor or Grantee to perform any act provided in this section shall not impair the validity of this Conservation Easement Deed or limit its enforceability in any way. Any transfer under this section is subject to the requirements of the section below entitled “No Merger.” 12. Dissolution of Grantee. Grantee shall immediately transfer the Conservation Easement and deliver any and all monies it is then holding for purposes of this Conservation Easement, to an entity or other non-profit organization in accordance with the section above entitled “Assignment by Grantee”, if any of the following occurs: (a) Grantee dissolves; (b) Grantee is the subject of a voluntary or involuntary petition in bankruptcy; (c) Grantee is unable to carry out its obligations under this Conservation Easement; or (d) Grantor reasonably determines, with the concurrence of USFWS and CDFW, that any monies held by Grantee, or its successor entity, are not being held, managed, invested, or disbursed for conservation purposes consistent with this Conservation Easement and the MSHCP, Implementing Agreement, NCCP Permit, Section 10(a) Permit, and other legal requirements. Page 511 of 1128 72500.00001\7726262.5 10 13. No Merger. The doctrine of merger is not intended to apply and shall not operate to extinguish this Conservation Easement if the Conservation Easement and the Property become vested in the same party. If, despite this express intent, the doctrine of merger applies to extinguish the Conservation Easement then, unless Grantor, Grantee, USFWS, and CDFW otherwise agree in writing, a replacement conservation easement or restrictive covenant containing the same protections embodied in this Conservation Easement shall promptly be recorded against the Property by Grantee, or its successor in interest, in favor of a third party approved in writing by USFWS and CDFW to ensure that the mitigation obligations required under the NCCP Permit and Section 10(a) Permit, which include conservation of the Property in perpetuity through execution and recordation of a conservation easement or equivalent legal mechanism, and the purposes of California Civil Code section 815, are fulfilled. Until such replacement conservation easement or equivalent legal mechanism is executed and recorded, Grantee or its successor in interest shall continue to protect the Property in accordance with the terms of the original Conservation Easement. Any and all terms and conditions of this Conservation Easement shall be deemed covenants and restrictions upon the Property, which shall run with the land according to California law and otherwise exist in perpetuity. 14. Notices. Any notice, demand, request, consent, approval, or communication that Grantor or Grantee desires or is required to give to the other shall be in writing, with a copy to USFWS and CDFW, and be served personally or sent by recognized overnight courier that guarantees next-day delivery or by first class mail, postage fully prepaid, addressed as follows: To Grantor: City of Palm Desert Palm Desert City Hall 73-510 Fred Waring Drive Palm Desert, CA 92260 Attention: City Manager To Grantee: Coachella Valley Conservation Commission 74-199 El Paseo, Suite 100 Palm Desert, California 92260 Attention: Executive Director With a copy: To CDFW: California Department of Fish and Wildlife Office of the General Counsel 1416 Ninth Street, 12th Floor Sacramento, California 95814-2090 Attn: General Counsel Page 512 of 1128 72500.00001\7726262.5 11 To USFWS: U.S. Fish and Wildlife Service Attn: Field Supervisor 777 E. Tahquitz Canyon Way, Suite 208 Palm Springs, CA 92262 or to such other address as either party shall designate by written notice to the other. Notice shall be deemed effective upon delivery in the case of personal delivery or delivery by overnight courier or, in the case of delivery by first class mail, five (5) days after deposit into the United States mail. The parties agree to accept facsimile signed documents and agree to rely upon such documents as if they bore original signatures. Each party agrees to provide to the other parties, within seventy- two (72) hours after transmission of such a facsimile, the original documents that bear the original signatures. 15. Amendment. This Conservation Easement Deed may be amended by Grantor and Grantee only by mutual written agreement, with the written approval of USFWS and CDFW (which approval shall not be unreasonably withheld or delayed). Any such amendment shall be consistent with the purposes of this Conservation Easement and shall not affect its perpetual duration. Any such amendment shall be recorded in the official records of Riverside County, State of California. 16. No Hazardous Materials Liability. Grantor represents and warrants that it has no knowledge of any release, threatened release, storage or disposal of Hazardous Materials (defined below) in, on, under, about or affecting the Property. 16.1 Without limiting any other indemnification obligations set out hereinabove, Grantor agrees to indemnify, protect and hold harmless the Indemnified Parties (as defined hereinabove) against any and all Claims (as defined hereinabove) arising from or connected with any Hazardous Materials present, alleged to be present, or otherwise associated with the Property at any time, except any Hazardous Materials placed, disposed or released by Grantee, its employees or agents. This release and indemnification includes, without limitation, Claims for injury to or death of any person or physical damage to any property; and the violation or alleged violation of, or other failure to comply with, any Environmental Laws (defined below). If any action or proceeding is brought against any of the Indemnified Parties by reason of any such Claim, Grantor shall, at the election of and upon written notice from Grantee, defend such action or proceeding by counsel reasonably acceptable to the Indemnified Party or reimburse Grantee for all charges incurred in defending the action or proceeding. 16.2 Despite any contrary provision of this Conservation Easement Deed, the parties do not intend this Conservation Easement to be, and this Conservation Easement shall not be, construed such that it creates in or gives to Grantee any of the following: (a) The obligations or liabilities of an “owner” or “operator,” as those terms are defined and used in Environmental Laws (defined below), including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. sections 9601, et seq.; hereinafter, “CERCLA”); or Page 513 of 1128 72500.00001\7726262.5 12 (b) The obligations or liabilities of a person described in 42 U.S.C. section 9607(a)(3) or (4); or (c) the obligations of a responsible person under any applicable Environmental Laws: or (d) The right to investigate and remediate any Hazardous Materials associated with the Property; or (e) Any control over Grantor’s ability to investigate, remove, remediate or otherwise clean up any Hazardous Materials associated with the Property. 16.3 The term “Hazardous Materials” includes, without limitation, (a) material that is flammable, explosive or radioactive; (b) petroleum products, including by-products and fractions thereof; and (c) hazardous materials, hazardous wastes, hazardous or toxic substances, or related materials defined in CERCLA; the Resource Conservation and Recovery Act of 1976 (42 U.S.C. § 6901, et seq .); the Hazardous Materials Transportation Safety and Security Reauthorization Act of 2005 (49 U.S.C. sections 5101, et seq.); the Hazardous Materials Transportation Act (49 U.S.C. sections 6901 et seq.); the Hazardous Waste Control Law (California Health & Safety Code sections 25100, et seq.); the Carpenter-Presley-Tanner Hazardous Substance Account Act (California Health & Safety Code section 25300, et seq.); and in the regulations adopted and publications promulgated pursuant to them, or any other applicable federal, state or local laws, ordinances, rules, regulations or orders now in effect or enacted after the date of this Conservation Easement Deed. The term “Environmental Laws” includes, without limitation, any federal, state, local or administrative agency statute, ordinance, rule, regulation, order or requirement relating to pollution, protection of human health or safety, the environment or Hazardous Materials. 16.4 Grantor represents, warrants and covenants to Grantee that Grantor’s activities (including those of its agents, employees, invitees and contractors) upon and use of the Property will comply with all Environmental Laws. 17. General Provisions. 17.1 Controlling Law. The interpretation and performance of this Conservation Easement Deed shall be governed by the laws of the State of California, disregarding the conflicts of law principles of such state, and by applicable federal law (including the FESA). 17.2 Liberal Construction. Any general rule of construction to the contrary notwithstanding, this Conservation Easement Deed shall be liberally construed to affect the purposes of this Conservation Easement and the policy and purpose of Civil Code sections 815, et seq. If any provision in this instrument is found to be ambiguous, an interpretation consistent with the purposes of this Conservation Easement that would render the provision valid shall be favored over any interpretation that would render it invalid. 17.3 Severability. If a court of competent jurisdiction voids or invalidates on its face any provision of this Conservation Easement Deed, such action shall not affect the remainder of this Conservation Easement Deed. If a court of competent jurisdiction voids or invalidates the Page 514 of 1128 72500.00001\7726262.5 13 application of any provision of this Conservation Easement Deed to a person or circumstance, such action shall not affect the application of the provision to other persons or circumstances. 17.4 Entire Agreement. This instrument sets forth the entire agreement of the parties with respect to the Conservation Easement and supersedes all prior discussions, negotiations, understandings, or agreements relating to the Conservation Easement. No alteration or variation of this instrument shall be valid or binding unless contained in a written amendment in compliance with all provisions herein. 17.5 No Forfeiture. Nothing contained herein will result in a forfeiture or reversion of Grantor’s title in any respect. 17.6 Successors. The covenants, terms, conditions, and restrictions of this Conservation Easement Deed shall be binding upon, and inure to the benefit of, the parties hereto and their respective personal representatives, heirs, successors, and assigns and shall constitute a servitude running in perpetuity with the Property. 17.7 Termination of Rights and Obligations. A party’s rights and obligations under this Conservation Easement Deed terminate upon the transfer of its interest in the Conservation Easement or Property, except that liability for acts or omissions occurring prior to transfer shall survive transfer. 17.8 Captions. The captions in this instrument have been inserted solely for convenience of reference and are not a part of this instrument and shall have no effect upon its construction or interpretation. 17.9 Warranty. Grantor represents and warrants that there are no outstanding mortgages, liens, encumbrances or other interests in the Property which have not been expressly subordinated to this Conservation Easement Deed, and that the Property is not subject to any other conservation easement or interest that is adverse to this Conservation Easement. 17.10 Additional Easements. Grantor shall not grant any additional easements, rights of way or other interests in the Property (other than a security interest that is subordinate to this Conservation Easement Deed), or grant or otherwise abandon or relinquish any water agreement relating to the Property, without first obtaining the written consent of Grantee, USFWS and CDFW. Grantee, USFWS and CDFW may withhold such consent if it determines that the proposed interest or transfer is inconsistent with the purposes of this Conservation Easement or will impair or interfere with the conservation values of the Property. This section shall not prohibit transfer of a fee or leasehold interest in the Property that is subject to this Conservation Easement Deed and otherwise complies with the terms of this Deed. 17.11 Counterparts. The parties may execute this instrument in two or more counterparts, which shall, in the aggregate, be signed by both parties. Each counterpart shall be deemed an original instrument as against any party who has signed it. In the event of any disparity between the counterparts produced, the recorded counterpart shall be controlling, Page 515 of 1128 72500.00001\7726262.5 14 17.12 Recording. Grantee shall record this Conservation Easement in the Official Records of the County in which the Property is located, and may re-record it at any time as Grantee deems necessary to preserve its rights in this Conservation Easement. IN WITNESS WHEREOF Grantor has executed this Conservation Easement Deed the day and year first above written. GRANTOR: City of Palm Desert By: ____________________________ L. Todd Hileman City Manager GRANTEE: Coachella Valley Conservation Commission By: ____________________________ Tom Kirk Executive Director Page 516 of 1128 72500.00001\7726262.5 15 CERTIFICATE OF ACCEPTANCE This is to certify that the interest in real property conveyed by the foregoing Conservation Easement Deed by _________________ dated is hereby accepted by the undersigned officer on behalf of the Grantee, Coachella Valley Conservation Commission, pursuant to authority conferred by the Commission, and the Grantee consents to recordation thereof by its duly authorized officer. COACHELLA VALLEY CONSERVATION COMMISSION By: _______________________________ Tom Kirk Executive Director Date: ________________________________ Page 517 of 1128 16 Exhibit A Legal Description Corresponding Assessor Parcel Number Ownership 1. 55.05 ACRES IN PAR 2 PM 163/030 PM 640 080 009 City of Palm Desert 2. 27.02 ACRES M/L IN POR SW 1/4 OF 640 180 016 City of Palm Desert 3. .47 ACRES IN LOT 1 MB 223/019 TR 640 350 001 City of Palm Desert 4. .28 ACRES IN LOT 2 MB 223/019 TR 640 350 002 City of Palm Desert 5. .28 ACRES IN LOT 3 MB 223/019 TR 640 350 003 City of Palm Desert 6. .31 ACRES IN LOT 4 MB 223/019 TR 640 350 004 City of Palm Desert 7. .24 ACRES IN LOT 5 MB 223/019 TR 640 350 005 City of Palm Desert 8. 24 ACRES IN LOT 6 MB 223/019 TR 640 350 006 City of Palm Desert 9. .24 ACRES IN LOT 7 MB 223/019 TR 640 350 007 City of Palm Desert 10. .28 ACRES IN LOT 8 MB 223/019 TR 640 350 008 City of Palm Desert 11. .30 ACRES IN LOT 9 MB 223/019 TR 640 350 009 City of Palm Desert 12. .38 ACRES IN LOT 10 MB 223/019 TR 640 350 010 City of Palm Desert 13. .37 ACRES IN LOT 11 MB 223/019 TR 640 350 011 City of Palm Desert 14. .31 ACRES IN LOT 12 MB 223/019 TR 640 350 012 City of Palm Desert 15. .35 ACRES IN LOT 13 MB 223/019 TR 640 350 013 City of Palm Desert 16. .31 ACRES IN LOT 14 MB 223/019 TR 640 350 014 City of Palm Desert 17. .32 ACRES IN LOT 15 MB 223/019 TR 640 350 015 City of Palm Desert 18. .34 ACRES IN LOT 16 MB 223/019 TR 640 350 016 City of Palm Desert 19. .26 ACRES IN LOT 17 MB 223/019 TR 640 350 017 City of Palm Desert 20. .39 ACRES IN LOT 18 MB 223/019 TR 640 350 018 City of Palm Desert 21. 1.97 ACRES IN LOT 19 MB 223/019 TR 640 350 019 City of Palm Desert 22. .92 ACRES IN LOT 20 MB 223/019 TR 640 350 020 City of Palm Desert 23. 1.14 ACRES IN LOT 21 MB 223/019 TR 640 350 021 City of Palm Desert 24. 1.67 ACRES IN LOT 22 MB 223/019 TR 640 350 022 City of Palm Desert 25. 2.10 ACRES IN LOT 23 MB 223/019 TR 640 350 023 City of Palm Desert 26. 3.21 ACRES IN POR LOT A AND LOTS B 640 350 024 City of Palm Desert 27. 4.39 ACRES IN LOT 29 MB 223/019 TR 640 360 001 City of Palm Desert 28. 3.89 ACRES IN LOT 28 MB 223/019 TR 640 360 002 City of Palm Desert Page 518 of 1128 17 29. 4.49 ACRES IN LOT 27 MB 223/019 TR 640 360 003 City of Palm Desert 30. .99 ACRES IN LOT 26 MB 223/019 TR 640 360 004 City of Palm Desert 31. 1.12 ACRES IN LOT 25 MB 223/019 TR 640 360 005 City of Palm Desert 32. .99 ACRES M/L IN LOT 24 MB 223/019 640 360 006 City of Palm Desert 33. .06 ACRES IN LOT D MB 223/019 TR 640 360 007 City of Palm Desert 34. 1.44 ACRES IN POR LOT A MB 223/019 640 360 008 City of Palm Desert Page 519 of 1128 18 Exhibit B Existing Trails Page 520 of 1128 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 15, 2024 PREPARED BY: Eric Ceja, Director of Economic Development REQUEST: RECEIVE AND FILE AN INFORMATIONAL REPORT FOR THE CITY- OWNED PARCEL LOCATED AT THE NORTHEAST CORNER OF OCOTILLO DRIVE AND TUMBLEWEED LANE RECOMMENDATION: Receive and file an informational report for the City-owned parcel located at the northeast corner of Ocotillo Drive and Tumbleweed Lane. BACKGROUND/ANALYSIS: During the 2023 Council Goal Study Session the Council adopted a series of Goals and Research items for staff to complete. One of those research items was to explore options for a parking lot at the City-owned parcel at the northeast corner of Ocotillo Drive and Tumbleweed Lane (shown below). PIQ Page 521 of 1128 City of Palm Desert Ocotillo Drive and Tumbleweed Lane Page 2 of 2 In 2008, the City acquired the 0.53-acre site with the intent of developing a public parking lot. In 2011, the City relocated residents and demolished the 12 -unit apartment complex that occupied the site. In 2014, in Closed Session, the City Council directed staff to “proceed with the necessary steps required to utilize designated Bond Proceeds for the construction of a grade - level parking facility on the property.” However, due to on-going development interest in the area, including how the City-owned parcel could contribute to development in the area, the project was put on hold. The site remains vacant with sparse native landscape. Yield Study and Cost Estimate The City Engineer was able to provide a rough yield study for the number of parking spaces that could be developed on this site. Approximately 37 parking stalls can be developed on the site with vehicle driveway access to both Tumbleweed Lane and Ocotillo Drive. The cost estimate associated with this lot, including engineering, construction, and contingency, is just under $500,000. Parking Demand and new Development In 2016, as part of the City’s General Plan update, the City contracted with Fehrs and Peers for a parking demand study. The study analyzed parking demand and availability along El Paseo and Highway 111 between Monterey Avenue and Portola Avenue. The study concluded that there is sufficient parking overall within the Downtown boundaries and that approximately 45% of spaces are occupied at peak times. For the area around Ocotillo Drive and Tumbleweed Lane, the study showed that, at peak demand, the parking area behind the Daily Grill was 60% occupied and the parking area adjacent to the City-owned site at the Galleria was less than 20% occupied. Although the study was completed in 2016, there have been no significant building additions or square footage increases in this area that would have created additional parking demand. Legal Review: This report has been reviewed by the City Attorney’s office. Strategic Plan: Staff’s recommendation does not accomplish any of the priorities identified in the City’s Strategic Plan. Appointed Body Recommendation: Staff reviewed this information with the Economic Development Subcommittee (EDS) on January 9, 2024. Based on the information described above the EDS recommended not moving forward with the project until additional parking demand and parking need in the immediate area is demonstrated. FINANCIAL IMPACT: There is no fiscal impact associated with staff’s recommendation. ATTACHMENTS: 1. Ocotillo & Tumbleweed Lot 2. Ocotillo & Tumbleweed Parking – Prelim Cost Estimate 3. Fehrs and Peers Downtown Parking Management Plan Page 522 of 1128 Page 523 of 1128 Page 524 of 1128 Description Quantity Unit Unit Price Total Price Planning (CUP)1 EA 5,000.00$ 5,000$ Preliminary Engineering 1 EA 5,000.00 5,000 Environmental Package 1 EA 3,500.00 3,500 Mitigation / Legal 1 EA 2,000.00 2,000 Agency Fees & Processing 1 EA 2,500.00 2,500 Miscellaneous 10%18,000.00 1,800 Total Entitlements 19,800$ Grading Mobilization 1 LS 10,000.00$ 10,000$ Tribal Monitoring 1 MO 5,000.00 5,000 Earthwork 500 CY 10.00 5,000 Import - CY 10.00 - Clear & Grub 1 AC 2,500.00 2,500 Erosion Control 2 AC 1,000.00 2,000 Storm Drain protection - LS 35,000.00 - Construction Water/Sewer 1 MO 10,000.00 10,000 Sub Total Grading 34,500$ Pavement Asphalt, Concrete Curb & Gutter Remove & dispose existing gravel 20,000 SF 1.00$ 20,000$ Pavement (3"AC/4"AB)20,000 SF 3.50 70,000 Drive Approach 1 EA 5,000.00 5,000 6' PCC Sidewalk 230 LF 20.00 4,600 6" Curb 50 LF 19.00 950 6" Curb & Gutter 250 LF 25.00 6,250 Lighting 1 LS 35,000.00 35,000 Landscaping 1 LS 50,000.00 50,000 Signage & Striping 1 LS 20,000.00 20,000 Storm Drain Drywells 1 EA 25,000.00 25,000 Sub Total Paving 236,800$ Miscellaneous Professional Engineering 8.0%291,100$ 23,288$ Surveying 6.0%291,100 17,466 Legal & Title (CC&R's)2.0%291,100 5,822 Landscape Architect 4.0%291,100 11,644 Agency Permits, Fees & Utilities 10.0%291,100 29,110 Bonds & Assurities 3.0%291,100 8,733 Structures Underground Electric - LF 150.00 - Gas - LF 50.00 - Misc Utility Trenching - LF 60.00 - Sub Total Miscellaneous 96,063$ Sub Total Infrastructure 367,363$ Sub Total Entitlements 19,800$ 20%Contingency 77,433 Total Project Costs 464,596$ This estimate represents best information & assumptions only. There are no representation concerning the estimated quantities and cost figures other than that all such figures are estimates only; remember that fluctuations in construction cost factors or the actual quantities depicted at the time of bidding and/or construction can vary greatly. Parking lot on Ocotillo & Tumbleweed (+ 37 stalls) 627-232-005 Preliminary Cost Estimate ENTITLEMENTS INFRASTRUCTURE Page 525 of 1128 Page 526 of 1128 Sustainability/Active Transportation Prepared for: City of Palm Desert Submitted by: 8141 E Kaiser Blvd., Suite 110 Anaheim, CA 92808 714.941.8800 Downtown Palm Desert DRAFT Parking Management Plan Page 527 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 (This page is intentionally left blank) Page 528 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 Table of Contents EXECUTIVE SUMMARY ...................................................................................................................................... 1 Existing Conditions .............................................................................................................................................................. 1 Parking Forecasts ................................................................................................................................................................. 1 Recommendations .............................................................................................................................................................. 2 Implementation .................................................................................................................................................................... 2 INTRODUCTION ................................................................................................................................................. 3 Related Studies ..................................................................................................................................................................... 3 City of Palm Desert General Plan Update .......................................................................................................... 3 Purpose of a Parking Management Plan .................................................................................................................... 5 Report Outline ...................................................................................................................................................................... 5 EXISTING CONDITIONS ..................................................................................................................................... 6 Parking Utilization ............................................................................................................................................................... 6 Parking Turnover ............................................................................................................................................................... 21 Summary of Existing Conditions ................................................................................................................................. 22 FUTURE PARKING DEMAND ESTIMATES .....................................................................................................26 Future Land Use and Parking Requirements ......................................................................................................... 26 Development of Shared Parking Model .................................................................................................................. 28 Future Shared Parking Demand ......................................................................................................................... 28 STRATEGY RECOMMENDATIONS ..................................................................................................................34 Recommended Strategy #1: Increased Parking Supply .................................................................................... 34 General Background ................................................................................................................................................ 34 Examples of Other Cities Applying this Technique ..................................................................................... 35 Pros and Cons of the Approach ......................................................................................................................... 35 Application in Downtown Palm Desert ............................................................................................................ 36 Recommended Strategy #2: Shared Parking ......................................................................................................... 36 General Background ................................................................................................................................................ 36 Page 529 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 Examples of Other Cities Applying this Technique ..................................................................................... 37 Pros and Cons of the Approach ......................................................................................................................... 37 Application in Downtown Palm Desert ............................................................................................................ 37 Recommended Strategy #3: Parking In-Lieu Fees ............................................................................................... 38 General Background ................................................................................................................................................ 38 Examples of Other Cities Applying this Technique ..................................................................................... 39 Pros and Cons of the Approach ......................................................................................................................... 39 Application in Downtown Palm Desert ............................................................................................................ 39 Recommended Strategy #4: Parking Charges ...................................................................................................... 40 General Background ................................................................................................................................................ 40 Examples of Other Cities Applying this Technique ..................................................................................... 40 Pros and Cons of the Approach ......................................................................................................................... 41 Application in Downtown Palm Desert ............................................................................................................ 41 Recommended Strategy #5: Parking Benefits District ....................................................................................... 42 General Background ................................................................................................................................................ 42 Examples of Other Cities Applying this Technique ..................................................................................... 42 Pros and Cons of the Approach ......................................................................................................................... 43 Application in Downtown Palm Desert ............................................................................................................ 43 Recommended Strategy #6: Urban Design ............................................................................................................ 44 General Background ................................................................................................................................................ 44 Examples of Other Cities Applying this Technique ..................................................................................... 44 Pros and Cons of the Approach ......................................................................................................................... 45 Application in Downtown Palm Desert ............................................................................................................ 45 Recommended Strategy #7: Time Limits and Restrictions ............................................................................... 46 General Background ................................................................................................................................................ 46 Examples of Other Cities Applying this Technique ..................................................................................... 46 Pros and Cons of the Approach ......................................................................................................................... 46 Application in Downtown Palm Desert ............................................................................................................ 47 Recommended Strategy #8: Employer Transportation Demand Management (TDM) Programs ... 47 General Background ................................................................................................................................................ 47 Examples of Other Cities Applying this Technique ..................................................................................... 48 Pros and Cons of the Approach ......................................................................................................................... 48 Page 530 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 Application in Downtown Palm Desert ............................................................................................................ 48 Recommended Strategy #9: Employer Parking Cash-Out ............................................................................... 49 General Background ................................................................................................................................................ 49 Examples of Other Cities Applying this Technique ..................................................................................... 49 Pros and Cons of the Approach ......................................................................................................................... 49 Application in Downtown Palm Desert ............................................................................................................ 50 Recommended Strategy #10: PRovide Facilities For Alternatives to Driving ........................................... 50 General Background ................................................................................................................................................ 50 Examples of Other Cities Applying this Technique ..................................................................................... 50 Pros and Cons of the Approach ......................................................................................................................... 50 Application in Downtown Palm Desert ............................................................................................................ 51 Recommended Strategy #11: Intelligent Transportation Systems (ITS) ..................................................... 52 General Background ................................................................................................................................................ 52 Examples of Other Cities Applying this Technique ..................................................................................... 52 Pros and Cons of the Approach ......................................................................................................................... 52 Application in Downtown Palm Desert ............................................................................................................ 53 STRATEGY IMPLEMENTATION .......................................................................................................................54 Near-Term (1-2 years) ..................................................................................................................................................... 54 Mid-Term (3-6 Years) ...................................................................................................................................................... 55 Long-Term (6+ Years) ..................................................................................................................................................... 56 Page 531 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 Appendices APPENDIX A: PARKING COUNT DATA APPENDIX B: SUBAREA LAND USE Page 532 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 List of Figures Figure 1: Context Map ........................................................................................................................................................................ 7 Figure 2 (1 of 2): Parking Supply .................................................................................................................................................... 8 Figure 2 (2 of 2): Parking Supply .................................................................................................................................................... 9 Figure 3: Parking Occupancy: 9 AM Observed ...................................................................................................................... 13 Figure 4: Parking Occupancy: 12 PM Observed .................................................................................................................... 14 Figure 5: Parking Occupancy: 3 PM Observed ....................................................................................................................... 15 Figure 6: Parking Occupancy: 7 PM Observed ....................................................................................................................... 16 Figure 7: Parking Occupancy: 9 AM Adjusted ........................................................................................................................ 17 Figure 8: Parking Occupancy: 12 PM Adjusted ...................................................................................................................... 18 Figure 9: Parking Occupancy: 3 PM Adjusted ........................................................................................................................ 19 Figure 10: Parking Occupancy: 7 PM Adjusted ...................................................................................................................... 20 Figure 11: Average Length of Stay ............................................................................................................................................. 23 Figure 12: Shared Parking Subareas .......................................................................................................................................... 29 Page 533 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 List of Tables TABLE 1 EXISTING PEAK HOUR PARKING OCCUPANCY ...................................................................................................... 6 TABLE 2 LAND USE PROJECTIONS ............................................................................................................................................. 26 TABLE 3 STUDY AREA MINIMUM PARKING REQUIREMENTS Per Existing Municipal Code ............................... 27 TABLE 4 FUTURE SUBAREA LAND USE (TOTAL) .................................................................................................................... 31 TABLE 5 FUTURE SHARED PARKING DEMAND AND SUPPLY NEEDed ........................................................................ 32 TABLE 6 FUTURE LAND USE ACCOMODATED WITH EXISTING PARKING SUPPLY ................................................. 33 Page 534 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 EXECUTIVE SUMMARY Like many similar downtown areas, Downtown Palm Desert currently is perceived to have issues related to parking. The perception is that there is insufficient parking in the city center and more parking is needed. The purpose of this study is to develop a Parking Management Plan for Downtown Palm Desert that includes near-term, mid-term, and long-term strategies to better use the existing parking and provide a mechanism to add parking as future growth occurs. This report uses recent parking data collected by Fehr & Peers to study supply and demand and recommend future parking measures. EXISTING CONDITIONS Weekday data collected in July 2015 relating to parking demand, parking occupancy, and parking surveys was compiled and summarized. Key findings of our existing conditions analysis include: • There is sufficient parking overall within Downtown Palm Desert, with approximately 45% of the spaces occupied at peak times. • Peak on-street parking demand occurs between 12:00 PM and 1:00 PM; peak off-street parking demand occurs at 1:00 PM. Peak demand in the study area as a whole occurs between 12:00 PM and 1:00 PM. • There are some locations, particularly along El Paseo, where there is insufficient parking at various times during the day. • The average length of stay for on-street parking is approximately 1.8 hours. Approximately 65% of the vehicles parked on-street were parked for less than two hours. It is likely that many of these vehicles are used by retail and commercial visitors to Downtown Palm Desert. PARKING FORECASTS We utilized the Urban Land Institute (ULI) shared parking model and future land use growth in Downtown Palm Desert to estimate future parking demand. Under a shared parking arrangement, Downtown Palm Desert can accommodate substantial land use increases using the current excess parking supply. Areas on the western and eastern edges of Downtown Palm Desert would need additional parking supply even with shared parking, but can still have some growth before additional parking is necessary. 1 Page 535 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 RECOMMENDATIONS Based on existing and forecasted future parking conditions, we recommended eleven strategies that could be incorporated into a Parking Management Plan. Information is provide regarding the general background, local examples, pros and cons, and specific application in Downtown Palm Desert for each of the following strategies: • Increased Parking Supply • Shared Parking • Parking In-Lieu Fees • Parking Charges • Parking Benefits District • Urban Design • Time Limits and Restrictions • Employer Transportation Demand Management Programs • Employer Parking Cash-Out • Provide Facilities for Alternatives to Driving • Intelligent Transportation Systems (ITS) IMPLEMENTATION For each of the recommended strategies we outline implementation in the near-term (1-2 years), mid-term (3-6 years), and long term (6+ years). Additionally, strategies are grouped together for more effective implementation. 2 Page 536 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 INTRODUCTION Downtown Palm Desert is a vibrant commercial and retail district located in the City of Palm Desert. This area successfully combines employment opportunities, stores, and restaurants in a walkable environment. The high level of activity in Downtown Palm Desert, while welcomed by the City, merchants, and property owners, is accompanied by a perception that there is insufficient parking within the city center. RELATED STUDIES CITY OF PALM DESERT GENERAL PLAN UPDATE The City of Palm Desert is currently in the process of updating its General Plan, including the City’s Mobility Element. Among its goals, the Mobility Element includes actively managing the City’s system of public and private parking facilities in a way that supports future development. The suggested policies to reach this goal are as follows: • Public Parking Facilities: Provide new public parking facilities only after applying appropriate techniques to manage parking demand and ensure efficient use of all public and private parking facilities. • Parking Management: Actively manage public parking facilities to ensure that all potential users are benefitting from this civic resource. Continue to evaluate supply and demand and implement appropriate strategies to maximize use and cost effectiveness of public parking facilities. • Public/Private Partnerships: Promote the use of joint public and private approaches to parking which might include leasing of private parking lots for short-term or long-term use, using public parking for temporary private functions, or the construction of joint-use facilities. • Innovative Parking Approaches: Allow the use of innovative parking supply and demand strategies such as shared parking, unbundling parking, and other related items within privately owned parking facilities to allow an appropriate level of flexibility for these private land owners. • Formal Parking Evaluations: Perform formal evaluations of parking capacity on a biannual basis to recognize areas where parking is under- or over-utilized. The Mobility Element also includes the following goals: • Livable Streets: A balanced transportation system that accommodates all modes of travel safely and efficiently. This includes policies such as considering all modes of travel in planning, design, and construction of transportation projects. 3 Page 537 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 • Pedestrian Facilities: Integrated pedestrian pathways that connect residences, businesses, educational, and community uses. This includes policies such as providing adequate sidewalks along all roadways and providing pedestrians with facilities such as crosswalks, seating, buffers, shading, and other amenities. • Bicycle Networks: Well-connected bicycle network that facilitates bicycling for commuting, school, shopping, and recreational trips. This includes policies such as requiring public and private developments to provide sufficient bicycle parking, providing bicycle facilities along roadways, and prioritizing transportation improvements that connect bicyclists to community facilities, supportive land use patterns, pedestrian routes, and transit stations. • Transit Facilities: An integrated transportation system that supports opportunities to use public and private transit systems. This includes promoting transit service where appropriate, reviewing bus stop locations, encouraging private transit in an appropriate fashion, and maintaining safe access to transit stops for pedestrians and bicyclists. • Sustainable Transportation: A transportation network that can be built, operated, and maintained within the City’s resource limitations. This includes policies such as requiring new developments to pay for fair share of construction costs related to new and/or upgraded infrastructure needed to accommodate the development. • Monitoring: A process to regularly monitor the performance of City transportation facilities. This applies to facilities such as major roadways, pedestrian facilities, bicycle lanes, and transit stops. • Transportation Innovation: A transportation system which leverages emerging technologies to improve mobility for residents, employees, and visitors. This includes regularly monitoring and evaluating new vehicle technologies. • Regional Coordination: The City transportation system operates as an integral element of the larger regional system. The General Plan Update also includes the City Center Area Plan, an in-depth plan aimed at establishing a true city center by creating a framework, design objectives, and implementation techniques to future development. The Plan’s goals are as follows: • A vibrant, regionally significant downtown centered on the 111 corridor. • A safe, multimodal City Center boulevard that ties the north and south sides of the downtown together into one cohesive center. • A vibrant district that fosters an active and interesting pedestrian environment. • An interconnected City Center that is easily accessible by the surrounding neighbors and the City at large. 4 Page 538 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 Key strategies of the plan center around three areas: • Access Improvements: These strategies include improving the pedestrian environment through improved pedestrian facilities and amenities and improving bicycle access, among other tools. • Landscape and Urban Design Improvements: These strategies aim to improve the area’s aesthetic appearance and pedestrian comfort. • Parking Improvements: Parking in the City Center should be managed as a single system, such as through centralized shared parking structures. Additional supply should be built in an orderly fashion ahead of new development occurring as catalytic investments. PURPOSE OF A PARKING MANAGEMENT PLAN A parking management plan is intended to comprehensively address parking supply and demand, particularly in a downtown or mixed-use area. Historically, the tendency has been to address parking issues through an increase in supply. In many areas, the desire to increase parking supply results in constructing additional surface lots or parking structures. This approach can be very costly as a structure parking space may cost upwards of $30,000 to construct and parking structures may require hundreds of thousands of dollars to operate on a yearly basis. Instead of addressing only supply, a parking management plan addresses the demand for parking, through both the management of existing parking and adding to the supply once it becomes necessary. In the case of Downtown Palm Desert, a parking management plan is appropriate since there is overall availability of supply within the city center at this time but there may be future shortfalls as additional development occurs. There are also existing parking shortfalls at selected locations (e.g. El Paseo) or during selected times of the day (lunchtime, mid-afternoon, or dinnertime). REPORT OUTLINE This report includes four subsequent chapters to address the various elements of a Parking Management Plan including: • Review of Existing Conditions • Parking Demand Forecasts • Strategy Recommendations • Strategy Implementation 5 Page 539 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 EXISTING CONDITIONS This chapter summarizes information regarding existing parking utilization and parking turnover for areas along the northern edge of Highway 111 and portions of Downtown Palm Desert south of Highway 111. Newly collected data is compiled and presented here. Figure 1 shows the study area context. PARKING UTILIZATION There are currently 6,851 parking spaces in Downtown Palm Desert. This includes 5,778 off-street parking spaces and 1,073 on-street parking spaces. Existing parking supply is shown on Figure 2. Generally, parking demand peaks in the early afternoon at 1:00 PM, as shown on Figure 3. Peak demand for on-street parking spaces occurs at 12:00 PM and 1:00 PM, while peak demand for off-street spaces occurs at 1:00 PM. Table 1 summarizes the existing parking inventory and peak occupancy in Downtown Palm Desert. Chart 1 illustrates the percent of parking occupancy throughout the day. We collected parking occupancy counts in July of 2015. Since the counts were conducted during the off- peak season for Palm Desert, an adjustment factor of 24% was applied to the counts, based on a comparison of on-peak and off-peak season observations. TABLE 1 EXISTING PEAK HOUR PARKING OCCUPANCY Location Time Inventory %Occupancy Study Area 1:00 PM 6,851 47% Off-Street Parking 12:00 PM/ 1:00 PM 5,778 51% On-Street Parking 1:00 PM 1,073 47% Source: Fehr & Peers, 2015 Note: The data in this table includes the 24% adjustment factor. 6 Page 540 of 1128 PALM DESERT DR EL PASEO ABRONIA TRLSAN LUIS REY AVESAN PASQUAL AVESAN RAFAEL AVE111 EL PASEO PALM DESERT DR DE ANZA WAY PORTOLA AVEALESSANDRO DR JUNIPE R ST LARREA ST SHADOW MOUNTAIN DR JOSHUA TREE ST SAN GORGONIO WAY SAGE LNSAN PABLO AVELUPINE LNOCOTILLO DRFRONTAGE RDCHICORY STPINES TO PALMS HWYCABRILLO AVELARKSPUR LNCANDLEWOOD STSAN JOSE AVEMONTEREY AVESAN JUAN AVELAS PALMAS AVETUMBLEWEED LN VERBA SANTA DRSAN CARLOS AVESHADOW LAKE D R S A N T A A N IT A A V ESAN JACINTO AVELANTANA AVEQUAILBRUSH AVEGARDEN SQSUNLODGE LNSAN BENITO CIRSAN MARCOS AVEPRICKLY PEAR LNSAN ANTONIO CIRSAN LUIS REY AVEALESSANDRO DR 67 5251 62 48 65 36 66 4334 81 53 7270 16 1 30 45 79 31 32 39 63 69 38 23 77 8 76 40 74 55 6 68 57 9 42 25 64 5 7875 54 47 21 71 1537 37 1742 61 35 73 1914 2210 41 49 28 6050 18 13 56 33 11 20 24 44 29 27 59 80 46 12 26 58 Context Map Study Area Parking Lot Street Segment Parking # Figure 1 Page 541 of 1128 PALM DESERT DR 111 EL PASEO SAGE LNSAN PABLO AVELUPINE LNLARKSPUR LNMONTEREY AVETUMBLEWEED LN SUNLODGE LNSAN MARCOS AVEALESSANDRO DR 915 199 98 177 186 205 184 217 138 58 115 75 6748 50 72 39 32 48 38 30 22 2622 19 472 27 23 141018 18 47 18 11 55 34 48 46 43 61 27 24 2628 50 2226 16 13 8 24 26 16 22 28 6 16 11 10 11 9 15 11 10 15 15 4 10 69 12 5 4 12 28 60 24 Parking Supply West Study Area Parking Lot Street Segment Parking #Parking Lot Supply Figure 2a Page 542 of 1128 EL PASEO SAN LUIS REY AVESAN PASQUAL AVEPALM DESERT DR PORTOLA AVEALESSANDRO DR LARREA ST SHADOW MOUNTAIN DR CABRILLO AVELARKSPUR LNSAN JOSE AVESAN JUAN AVESANTA ANI TA AVESAN JACINTO AVELANTANA AVEGARDEN SQPRICKLY PEAR LNSAN LUIS REY AVE441472 89 915 263 84 148 48112 177 120 58 3442 37 47 43 39 28 19 20 2619 32 12 5 6 69 42 65 37 8 60 46 21 34 18 28 17 15 24 16 6 10 8 12 46 13 2 1558 10 8 8 24 26 10 10 6 9 5 114 2 28 Parking Supply East Study Area Parking Lot Street Segment Parking #Parking Lot Supply Figure 2b Page 543 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 (This page is intentionally left blank) 10 Page 544 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 Chart 1: Weekday Hourly Occupancy Figures 3 through 10 show observed and seasonally- adjusted parking occupancy in Downtown Palm Desert by parking lot and roadway segment. In the morning, parking utilization in the city center is generally low. Many locations experience utilization below 40%. Parking utilization increases by noon, with some parking lots and several segments along El Paseo experiencing occupancy above 80%. In the mid-afternoon 0% 10% 20% 30% 40% 50% 60% 6AM 7AM 8AM 9AM 10AM 11AM 12PM 1PM 2PM 3PM 4PM 5PM 6PM 7PM 8PMOCCUPANCY TIME OF DAY Total Parking On-Street Parking Off-Street Parking Underutilized parking in the study area. 11 Page 545 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 parking utilization decreases from earlier peaks in several areas especially along El Paseo. At 7:00 PM, a large portion of off-street parking lots experience occupancy below 21%. Occupancy for on-street parking is generally low except for some segments of El Paseo which experience utilization above 80%. 12 Page 546 of 1128 PALM DESERT DR EL PASEO ABRONIA TRLSAN LUIS REY AVESAN PASQUAL AVESAN RAFAEL AVE111 EL PASEO PALM DESERT DR DE ANZA WAY PORTOLA AVEALESSANDRO DR JUNIPE R ST LARREA ST SHADOW MOUNTAIN DR JOSHUA TREE ST SAN GORGONIO WAY SAGE LNSAN PABLO AVELUPINE LNOCOTILLO DRFRONTAGE RDCHICORY STPINES TO PALMS HWYCABRILLO AVELARKSPUR LNCANDLEWOOD STSAN JOSE AVEMONTEREY AVESAN JUAN AVELAS PALMAS AVETUMBLEWEED LN VERBA SANTA DRSAN CARLOS AVESHADOW LAKE D R S A N T A A N IT A A V ESAN JACINTO AVELANTANA AVEQUAILBRUSH AVEGARDEN SQSUNLODGE LNSAN BENITO CIRSAN MARCOS AVEPRICKLY PEAR LNSAN ANTONIO CIRSAN LUIS REY AVEALESSANDRO DR Parking Occupancy: 9 AM Observed Study Area Parking Occupancy 0% - 20% 21% - 40% 41% - 60% 61% - 80% 81% - 100%Figure 3 Page 547 of 1128 PALM DESERT DR EL PASEO ABRONIA TRLSAN LUIS REY AVESAN PASQUAL AVESAN RAFAEL AVE111 EL PASEO PALM DESERT DR DE ANZA WAY PORTOLA AVEALESSANDRO DR JUNIPE R ST LARREA ST SHADOW MOUNTAIN DR JOSHUA TREE ST SAN GORGONIO WAY SAGE LNSAN PABLO AVELUPINE LNOCOTILLO DRFRONTAGE RDCHICORY STPINES TO PALMS HWYCABRILLO AVELARKSPUR LNCANDLEWOOD STSAN JOSE AVEMONTEREY AVESAN JUAN AVELAS PALMAS AVETUMBLEWEED LN VERBA SANTA DRSAN CARLOS AVESHADOW LAKE D R S A N T A A N IT A A V ESAN JACINTO AVELANTANA AVEQUAILBRUSH AVEGARDEN SQSUNLODGE LNSAN BENITO CIRSAN MARCOS AVEPRICKLY PEAR LNSAN ANTONIO CIRSAN LUIS REY AVEALESSANDRO DR Parking Occupancy: 12 PM Observed Study Area Parking Occupancy 0% - 20% 21% - 40% 41% - 60% 61% - 80% 81% - 100%Figure 4 Page 548 of 1128 PALM DESERT DR EL PASEO ABRONIA TRLSAN LUIS REY AVESAN PASQUAL AVESAN RAFAEL AVE111 EL PASEO PALM DESERT DR DE ANZA WAY PORTOLA AVEALESSANDRO DR JUNIPE R ST LARREA ST SHADOW MOUNTAIN DR JOSHUA TREE ST SAN GORGONIO WAY SAGE LNSAN PABLO AVELUPINE LNOCOTILLO DRFRONTAGE RDCHICORY STPINES TO PALMS HWYCABRILLO AVELARKSPUR LNCANDLEWOOD STSAN JOSE AVEMONTEREY AVESAN JUAN AVELAS PALMAS AVETUMBLEWEED LN VERBA SANTA DRSAN CARLOS AVESHADOW LAKE D R S A N T A A N IT A A V ESAN JACINTO AVELANTANA AVEQUAILBRUSH AVEGARDEN SQSUNLODGE LNSAN BENITO CIRSAN MARCOS AVEPRICKLY PEAR LNSAN ANTONIO CIRSAN LUIS REY AVEALESSANDRO DR Parking Occupancy: 3 PM Observed Study Area Parking Occupancy 0% - 20% 21% - 40% 41% - 60% 61% - 80% 81% - 100%Figure 5 Page 549 of 1128 PALM DESERT DR EL PASEO ABRONIA TRLSAN LUIS REY AVESAN PASQUAL AVESAN RAFAEL AVE111 EL PASEO PALM DESERT DR DE ANZA WAY PORTOLA AVEALESSANDRO DR JUNIPE R ST LARREA ST SHADOW MOUNTAIN DR JOSHUA TREE ST SAN GORGONIO WAY SAGE LNSAN PABLO AVELUPINE LNOCOTILLO DRFRONTAGE RDCHICORY STPINES TO PALMS HWYCABRILLO AVELARKSPUR LNCANDLEWOOD STSAN JOSE AVEMONTEREY AVESAN JUAN AVELAS PALMAS AVETUMBLEWEED LN VERBA SANTA DRSAN CARLOS AVESHADOW LAKE D R S A N T A A N IT A A V ESAN JACINTO AVELANTANA AVEQUAILBRUSH AVEGARDEN SQSUNLODGE LNSAN BENITO CIRSAN MARCOS AVEPRICKLY PEAR LNSAN ANTONIO CIRSAN LUIS REY AVEALESSANDRO DR Parking Occupancy: 7 PM Observed Study Area Parking Occupancy 0% - 20% 21% - 40% 41% - 60% 61% - 80% 81% - 100%Figure 6 Page 550 of 1128 PALM DESERT DR EL PASEO ABRONIA TRLSAN LUIS REY AVESAN PASQUAL AVESAN RAFAEL AVE111 EL PASEO PALM DESERT DR DE ANZA WAY PORTOLA AVEALESSANDRO DR JUNIPE R ST LARREA ST SHADOW MOUNTAIN DR JOSHUA TREE ST SAN GORGONIO WAY SAGE LNSAN PABLO AVELUPINE LNOCOTILLO DRFRONTAGE RDCHICORY STPINES TO PALMS HWYCABRILLO AVELARKSPUR LNCANDLEWOOD STSAN JOSE AVEMONTEREY AVESAN JUAN AVELAS PALMAS AVETUMBLEWEED LN VERBA SANTA DRSAN CARLOS AVESHADOW LAKE D R S A N T A A N IT A A V ESAN JACINTO AVELANTANA AVEQUAILBRUSH AVEGARDEN SQSUNLODGE LNSAN BENITO CIRSAN MARCOS AVEPRICKLY PEAR LNSAN ANTONIO CIRSAN LUIS REY AVEALESSANDRO DR Parking Occupancy: 9 AM Adjusted Study Area Parking Occupancy 0% - 20% 21% - 40% 41% - 60% 61% - 80% 81% - 100%Figure 7 Page 551 of 1128 PALM DESERT DR EL PASEO ABRONIA TRLSAN LUIS REY AVESAN PASQUAL AVESAN RAFAEL AVE111 EL PASEO PALM DESERT DR DE ANZA WAY PORTOLA AVEALESSANDRO DR JUNIPE R ST LARREA ST SHADOW MOUNTAIN DR JOSHUA TREE ST SAN GORGONIO WAY SAGE LNSAN PABLO AVELUPINE LNOCOTILLO DRFRONTAGE RDCHICORY STPINES TO PALMS HWYCABRILLO AVELARKSPUR LNCANDLEWOOD STSAN JOSE AVEMONTEREY AVESAN JUAN AVELAS PALMAS AVETUMBLEWEED LN VERBA SANTA DRSAN CARLOS AVESHADOW LAKE D R S A N T A A N IT A A V ESAN JACINTO AVELANTANA AVEQUAILBRUSH AVEGARDEN SQSUNLODGE LNSAN BENITO CIRSAN MARCOS AVEPRICKLY PEAR LNSAN ANTONIO CIRSAN LUIS REY AVEALESSANDRO DR Parking Occupancy: 12 PM Adjusted Study Area Parking Occupancy 0% - 20% 21% - 40% 41% - 60% 61% - 80% 81% - 100%Figure 8 Page 552 of 1128 PALM DESERT DR EL PASEO ABRONIA TRLSAN LUIS REY AVESAN PASQUAL AVESAN RAFAEL AVE111 EL PASEO PALM DESERT DR DE ANZA WAY PORTOLA AVEALESSANDRO DR JUNIPE R ST LARREA ST SHADOW MOUNTAIN DR JOSHUA TREE ST SAN GORGONIO WAY SAGE LNSAN PABLO AVELUPINE LNOCOTILLO DRFRONTAGE RDCHICORY STPINES TO PALMS HWYCABRILLO AVELARKSPUR LNCANDLEWOOD STSAN JOSE AVEMONTEREY AVESAN JUAN AVELAS PALMAS AVETUMBLEWEED LN VERBA SANTA DRSAN CARLOS AVESHADOW LAKE D R S A N T A A N IT A A V ESAN JACINTO AVELANTANA AVEQUAILBRUSH AVEGARDEN SQSUNLODGE LNSAN BENITO CIRSAN MARCOS AVEPRICKLY PEAR LNSAN ANTONIO CIRSAN LUIS REY AVEALESSANDRO DR Parking Occupancy: 3 PM Adjusted Study Area Parking Occupancy 0% - 20% 21% - 40% 41% - 60% 61% - 80% 81% - 100%Figure 9 Page 553 of 1128 PALM DESERT DR EL PASEO ABRONIA TRLSAN LUIS REY AVESAN PASQUAL AVESAN RAFAEL AVE111 EL PASEO PALM DESERT DR DE ANZA WAY PORTOLA AVEALESSANDRO DR JUNIPE R ST LARREA ST SHADOW MOUNTAIN DR JOSHUA TREE ST SAN GORGONIO WAY SAGE LNSAN PABLO AVELUPINE LNOCOTILLO DRFRONTAGE RDCHICORY STPINES TO PALMS HWYCABRILLO AVELARKSPUR LNCANDLEWOOD STSAN JOSE AVEMONTEREY AVESAN JUAN AVELAS PALMAS AVETUMBLEWEED LN VERBA SANTA DRSAN CARLOS AVESHADOW LAKE D R S A N T A A N IT A A V ESAN JACINTO AVELANTANA AVEQUAILBRUSH AVEGARDEN SQSUNLODGE LNSAN BENITO CIRSAN MARCOS AVEPRICKLY PEAR LNSAN ANTONIO CIRSAN LUIS REY AVEALESSANDRO DR Parking Occupancy: 7 PM Adjusted Study Area Parking Occupancy 0% - 20% 21% - 40% 41% - 60% 61% - 80% 81% - 100%Figure 10 Page 554 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 PARKING TURNOVER We conducted parking turnover counts for on-street parking in the city center from 7:00 AM to 8:00 PM. The purpose of these counts was to identify the number of vehicles that remain parked over an extended period of time. To conduct this work, we recorded the license plate numbers for vehicles parked along El Paseo, Palm Desert Drive North, Palm Desert Drive South, and other streets. The average length of stay for on-street parking in the study area is shown on Figure 11. Across the entire Downtown Palm Desert, the average stay for cars utilizing on-street parking spaces is approximately 1.8 hours. 65% of vehicles stay less than two hours, and 84% stay less than three hours. Some roads have higher averages (e.g. more than three hours); these include portions of Palm Desert Drive North and the southeastern stretch of El Paseo. It is likely that that parking is utilized by employees of that area. Many sections of El Paseo have an average of less than 1.5 hours or between 1.5 and 2.0 hours. 66% are parked for less than two hours and 90% are parked less than three hours. It is likely that on-street parking on these portions of El Paseo is utilized by diners and retail shoppers. Heavily utilized on-street parking on El Paseo. 21 Page 555 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 SUMMARY OF EXISTING CONDITIONS Based on the parking occupancy counts and parking turnover data, we can offer the following conclusions regarding existing parking operations for areas along the northern edge of Highway 111 and portions of Downtown Palm Desert south of Highway 111: • There is sufficient parking overall within Downtown Palm Desert, with approximately 45% of the spaces occupied at peak times. • Parking is highly utilized at some locations during certain hours of the day. For example, on-street parking along certain stretches of El Paseo experience very high occupancy during the noon lunchtime and evening dinnertime periods. • The average length of stay at on-street parking spaces is less than two hours, most likely due to vehicles used by dining, retail, and commercial visitors to the city center, especially along El Paseo. 22 Page 556 of 1128 PALM DESERT DR EL PASEO ABRONIA TRLSAN LUIS REY AVESAN PASQUAL AVESAN RAFAEL AVE111 EL PASEO PALM DESERT DR DE ANZA WAY PORTOLA AVEALESSANDRO DR JUNIPE R ST LARREA ST SHADOW MOUNTAIN DR JOSHUA TREE ST SAN GORGONIO WAY SAGE LNSAN PABLO AVELUPINE LNOCOTILLO DRFRONTAGE RDCHICORY STPINES TO PALMS HWYCABRILLO AVELARKSPUR LNCANDLEWOOD STSAN JOSE AVEMONTEREY AVESAN JUAN AVELAS PALMAS AVETUMBLEWEED LN VERBA SANTA DRSAN CARLOS AVESHADOW LAKE D R S A N T A A N IT A A V ESAN JACINTO AVELANTANA AVEQUAILBRUSH AVEGARDEN SQSUNLODGE LNSAN BENITO CIRSAN MARCOS AVEPRICKLY PEAR LNSAN ANTONIO CIRSAN LUIS REY AVEALESSANDRO DR Average Length of Stay Study Area Length of Stay Less than 1.5 hours 1.5 - 2.0 2.0 - 2.5 2.5 - 3.0 More than 3 hours Figure 11 Page 557 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 (This page is intentionally left blank) 24 Page 558 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 (This page is intentionally left blank) 25 Page 559 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 FUTURE PARKING DEMAND ESTIMATES FUTURE LAND USE AND PARKING REQUIREMENTS Future land use projections for Downtown Palm Desert south of Highway 111 are shown in Table 2. For reference, existing land use densities and projected growth in each land use category are also included. TABLE 2 LAND USE PROJECTIONS Non-Residential Land Use Existing (Sq. Ft.) Future (Sq. Ft.) Growth (Sq. Ft.) General Retail 1,127,365 1,450,435 323,070 Fine/Casual Dining 234,868 352,348 117,480 Family Dining 156,578 274,059 117,481 Fast Food 46,974 76,343 29,369 Office (< 25 KSF) 11,408 59,568 48,160 Office (25 KSF – 100 KSF) - 35,700 35,700 Medical/Dental Office - 26,740 26,740 Bank with Drive-In 23,133 32,935 9,802 TOTAL 1,600,325 2,308,128 707,803 Residential Land Use Existing (DU) Future (DU) Growth (DU) Residential Rental 266 895 629 Residential Owned 386 679 293 TOTAL 652 1,574 922 26 Page 560 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 Table 3 shows the minimum parking requirements for existing and future land use in Downtown Palm Desert, according to the City of Palm Desert municipal code. As shown in the table, based on existing land uses, the current minimum parking requirements in the area total 8,763 spaces. For comparison, based on future land uses and intensities in the study area the total minimum parking requirements in the area would total 14,468 spaces. This is an increase of 5,705 required spaces in the area with the projected increases in land use. TABLE 3 STUDY AREA MINIMUM PARKING REQUIREMENTS PER EXISTING MUNICIPAL CODE Land Use Minimum Spaces Required Spaces (Existing) Required Spaces (Future) Residential Uses Studio and one bedroom 2 per unit 255 616 Two and more bedrooms 2 per unit 262 633 Dwelling, single-family 2 per unit 786 1,899 Retail General Retail 3 per 1,000 sq. ft. 3,382 4,351 Fine/Casual Dining 8 per 1,000 sq. ft. 1,879 2,819 Family Dining 8 per 1,000 sq. ft. 1,253 2,192 Fast Food 8 per 1,000 sq. ft. 376 611 Office Office (< 25 KSF) 4 per 1,000 sq. ft. 46 238 Office (25 KSF – 100 KSF) 4 per 1,000 sq. ft. - 143 Medical/Dental Office 5 per 1,000 sq. ft. - 134 Bank with Drive-In 3 per 1,000 sq. ft. 69 99 TOTAL 8,308 13,735 27 Page 561 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 DEVELOPMENT OF SHARED PARKING MODEL We developed and calibrated a shared parking model for Downtown Palm Desert south of Highway 111. This area was chosen since it is conducive to shared parking due to its mix of land uses and can be divided into “subareas” that are walkable for people parking at centralized locations. Shared parking is the use of a parking space to serve two or more individual land uses without conflict or encroachment. The ability to share parking spaces is the result of two conditions: • Variation in the accumulation of vehicles by hour, by day, or by season at the individual land uses. • Relationships among the land uses that result in visiting multiple land uses on the same auto trip. Advantages of shared parking include being able to serve multiple land uses’ parking needs with fewer parking facilities and the ability to increase development while taking advantage of existing parking supply. In other words, since different land uses would share parking spaces and less parking would be required, more development can take place in the Downtown using the existing parking supply instead of adding additional parking spaces. The Urban Land Institute (ULI) Shared Parking Model was utilized for this task and calibrated for the study area. FUTURE SHARED PARKING DEMAND Existing and future land uses in the area were applied to the calibrated shared parking model for an assessment of shared parking demand under future land use intensities. This assessment was focused by dividing the area into subareas for shared parking analysis. This presents a more realistic analysis of shared parking demand since the distance people are willing to walk from parking to their destination is significantly less than the size of the total area. For this analysis, five subareas were created from the portions of the area south of Highway 111. These subareas were determined based on realistic shared parking areas as well as the structure of land use data derived from the City’s traffic demand model. The five subareas are shown on Figure 12. The future land use in each subarea is shown in Table 4. 28 Page 562 of 1128 PALM DESERT DR EL PASEO ABRONIA TRLSAN LUIS REY AVESAN PASQUAL AVESAN RAFAEL AVEUV111 EL PASEO PALM DESERT DR DE ANZA WAY PORTOLA AVEALESSANDRO DR JUNIPER ST LARREA ST SHADOW MOUNTAIN DR JOSHUA TREE ST SAN GORGONIO WAY SAGE LNSAN PABLO AVELUPINE LNOCOTILLO DRFRONTAGE RDCHICORY STPINES TO PALMS HWYCABRILLO AVELARKSPUR LNCANDLEWOOD STSAN JOSE AVEMONTEREY AVESAN JUAN AVELAS PALMAS AVETUMBLEWEED LN VERBA SANTA DRSAN CARLOS AVESHADOW LAKE DR S A N T A A N I T A A V ESAN JACINTO AVELANTANA AVEQUAILBRUSH AVEGARDEN SQSUNLODGE LNSAN BENITO CIRSAN MARCOS AVEPRICKLY PEAR LNSAN ANTONIO CIRSAN LUIS REY AVEALESSANDRO DR Shared Parking Subareas Subarea Figure 12 # 2 3 4 51 Page 563 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 (This page is intentionally left blank) 30 Page 564 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 TABLE 4 FUTURE SUBAREA LAND USE (TOTAL) Land Use Subarea 1 Subarea 2 Subarea 3 Subarea 4 Subarea 5 Total Non-Residential (SF) General Retail 360,408 243,056 358,715 218,545 269,711 1,450,435 Fine/Casual Dining 104,259 58,012 78,632 50,886 60,559 352,348 Family Dining 92,276 44,432 55,464 38,104 43,783 274,059 Fast Food 24,267 12,466 16,183 10,804 12,623 76,343 Office <25k 15,520 19,200 800 2,880 21,168 59,568 Office 25 – 100 14,800 12,000 1,000 1,800 6,100 35,700 Office 100 – 500 0 0 0 0 0 0 Office > 500 0 0 0 0 0 0 Medical/Dental Office 6,640 12,000 200 1,800 6,100 26,740 Bank with Drive-In 6,467 9,427 4,627 5,347 7,067 32,935 TOTAL 624,637 410,593 515,621 330,166 427,111 2,308,128 Applied Shared Parking Ratio 2.1 Total Non-Residential Spaces Required 1,312 862 1,083 693 897 4,847 Residential (DU) Residential Rental 230 90 227 179 169 895 Residential Owned 241 51 101 113 173 679 TOTAL 471 141 328 292 342 1,574 Applied Shared Parking Ratio 1.6 Total Residential Spaces Required 754 226 525 467 547 2,518 Total Total Spaces Required 2,065 1,088 1,608 1,161 1,444 7,365 31 Page 565 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 Table 5 shows the future shared parking demand in each subarea. For comparison, existing parking supply within each subarea is also shown, to examine whether future development within each subarea can be accommodated with existing parking supply and without the need to build additional facilities. It should be noted that this assumes direct replacement of any existing parking with new development. The shared parking ratios are 1.6 spaces per dwelling unit for residential land uses and 2.1 spaces per thousand square feet for non-residential land uses. In Subareas 3 and 5, the existing parking supply can accommodate future land use. In Subarea 2 an additional 32 spaces are needed. In Subareas 1 and 4, an additional 548 and 259 parking spaces are needed, respectively. TABLE 5 FUTURE SHARED PARKING DEMAND AND SUPPLY NEEDED Future Shared Parking Demand Existing Parking Supply Additional Future Supply Needed Subarea 1 2,065 1,506 559 Subarea 2 1,088 1,049 39 Subarea 3 1,608 2,068 0 Subarea 4 1,161 895 266 Subarea 5 1,444 1,557 0 TOTAL 7,366 864 32 Page 566 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 Based on this subarea shared parking assessment, additional parking facilities would be required to meet shared parking demand in Subareas 1, 2, and 4 with the full buildout of assumed future land uses. However, partial buildout is possible without the need for additional parking spaces. Table 6 shows the percent of projected future land use increases that can be accommodated with existing parking for each subarea. In Subarea 2, most of the projected land use increases can be built. For Subareas 1 and 4, 58% and 50% of the projected increase can be built before more shared parking facilities are needed. TABLE 6 FUTURE LAND USE ACCOMODATED WITH EXISTING PARKING SUPPLY Subarea Percent of Future Land Use Built 1 58% 2 93% 4 50% 33 Page 567 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 STRATEGY RECOMMENDATIONS Based on our review of the existing and future parking conditions in Downtown Palm Desert, we determined that there are several strategies that could be incorporated into a Parking Management Plan. The recommended strategies are listed below: • Increased Parking Supply • Shared Parking • Parking In-Lieu Fees • Parking Charges • Parking Benefits District • Urban Design • Time Limits and Restrictions • Employer Transportation Demand Management Programs • Employer Parking Cash-Out • Provide Facilities for Alternatives to Driving • Intelligent Transportation Systems (ITS) For each recommended strategy, the following information is provided: • General Background • Examples of Other Cities Applying This Technique • Pros and Cons of the Approach • Application in Downtown Palm Desert Additional information regarding the timing and phasing for implementation of these strategies is provided in the next section. RECOMMENDED STRATEGY #1: INCREASED PARKING SUPPLY GENERAL BACKGROUND Regardless of the various management techniques to reduce parking demand and the necessary parking supply, additional parking supply may be necessary if development continues to occur. If a substantial number of parking spaces are required, then either a parking lot or a parking structure would need to be constructed. Parking structures are sometimes funded through the issuance of bonds, which are then repaid 34 Page 568 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 through revenue generated by the garage and other parking facilities and/or by parking in-lieu fees that developers pay as an alternative to supplying parking on-site. Currently, the City has substantial funds available due to existing bonds issued available for this strategy. EXAMPLES OF OTHER CITIES APPLYING THIS TECHNIQUE Examples of cities in Southern California building parking garages in response to increased parking demand are extensive. In fact this strategy has been the default response in many municipalities until recently. Cities with extensive networks of public parking garages include: • Fullerton • Santa Monica • Riverside PROS AND CONS OF THE APPROACH One of the advantages of building additional supply is that increased parking demand due to increased development can be accommodated. Additional parking supply can help avoid potential issues from underestimating demand and suffering from too little supply, which can increase traffic looking for parking and turn business patrons away. Another positive aspect of building additional parking structures is that this method usually garners support from local business owners. However, building additional parking structures does have its drawbacks. The main issue is cost. Parking garages can cost millions of dollars to construct and hundreds of thousands of dollars to maintain. One possible revenue source to address these costs would be funds the City has secured through issuing bonds. The also take up land that can otherwise go to denser retail development. Also, building additional supply can potentially encourage more driving to the district, creating additional vehicle traffic in the area. 35 Page 569 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 APPLICATION IN DOWNTOWN PALM DESERT The City of Palm Desert should increase parking supply in the Downtown in the long term in order to accommodate increased development. Shared parking should be implemented in the Downtown, however even with shared parking additional supply would be required in the analyzed subareas. The implementation of parking in-lieu fees (with developments participating in shared parking) can help fund the necessary additional supply in preparation of when increased development exhausts the existing shared parking supply. The future supply should be centrally located within each subarea. For example, the City can build a parking structure between Subareas 1 and 2 and a parking at the center of Subarea 4. RECOMMENDED STRATEGY #2: SHARED PARKING GENERAL BACKGROUND Shared parking is the use of a parking space to serve two or more individual land uses without conflict or encroachment. The ability to share parking spaces is the result of two conditions: • Variation in the accumulation of vehicles by hour, by day, or by season at the individual land uses. • Relationships among the land uses that result in visiting multiple land uses on the same auto trip. When a City or District decides to implement shared parking instead of enforcing dedicated minimum parking requirements on each individual land use, it is able to accommodate the various uses’ demand with a lower parking supply. This means fewer dedicated facilities will need to be constructed in favor of fewer shared facilities that still serve the demand generated by all the uses in the area. Furthermore, a City or District that converts an area’s parking to shared parking can continue increasing development while efficiently utilizing Source: Urban Land Institute 36 Page 570 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 existing supply; this means additional development can be accommodated with little or no additional parking, or with less parking than would otherwise have been built with dedicated parking requirements. EXAMPLES OF OTHER CITIES APPLYING THIS TECHNIQUE Shared parking has been studied and implemented in several cities in Southern California, including (but not limited to): • Brea (Central Park Village) • Long Beach (Downtown) • Manhattan Beach (Downtown and North End districts) • Palm Springs (Central Business District) • Riverside (Downtown) • Redlands PROS AND CONS OF THE APPROACH Shared parking can be a way to more efficiently use parking with many advantages. For example, more development can be accommodated, especially within the existing space that otherwise would have gone to build more parking, and without the need to build more (or as much) parking as development intensifies. This also results in less land being dedicated to parking. Without the need for as much expansive parking, development can be denser. It can also be cheaper, since the burden of building expensive parking structures can be somewhat reduced on developers. Shared parking does have its limitations. For example, its usefulness is limited by the proximity of destinations that share parking facility. Shared parking can’t be a blanket strategy applied to any district or area that wants to reduce parking requirements. Shared parking is only effective as far as people are willing to walk; this means pedestrian facilities can be a limiting factor as well. Furthermore, during analysis and implementation internal capture can be overestimated, especially for retail uses; this can result in an undersupply of parking. Also, there is the risk of inadequate capacity during unusual peak demand periods. APPLICATION IN DOWNTOWN PALM DESERT Shared parking can be implemented in Downtown Palm Desert in conjunction with the City Center Area Plan to accommodate increased development with reduced parking supply since various land uses would not need to provide dedicated parking facilities. According to existing parking supply and demand data, 37 Page 571 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 there is excess supply throughout the area. By implementing shared parking, the City can use this excess supply to increase development. Based on the subarea analysis of shared parking for future development, shared parking can accommodate full land use buildout in portions of Downtown. For some subareas, additional supply is needed even with shared parking, but is still lower than if dedicated parking was built for each development. Recommended shared parking ratios are 1.6 spaces per dwelling unit (residential) and 2.1 spaces per thousand square feet (non-residential). Parking demand should be monitored as development increases to make sure demand does not exceed supply. Also, as development increases, this strategy can be combined with parking in-lieu fees to fund the construction of the necessary additional shared supply at the subareas noted in the analysis ahead of those development thresholds. These fees can also be used to improve the pedestrian environment to and from parking to ensure that people are willing to park at more distant locations and walk to their Downtown destinations. RECOMMENDED STRATEGY #3: PARKING IN-LIEU FEES GENERAL BACKGROUND In some areas, it isn’t efficient or possible to require separate parking facilities for individual developments or uses. Rather, it makes more sense to have the parking at one or a few centralized locations in the district. This can improve the pedestrian environment, increase density, and reduce automobile traffic through the district especially due to drivers searching for open spaces. In order to accomplish this, the local municipality can give developers the option of paying a parking in-lieu fee to the city instead of supplying the necessary parking on-site. Then, the city can use this fund to build centralized public parking structures in the district. These in-lieu fee programs can either be voluntary or required for developers. Although not always the case, parking in-lieu fees can be a method to fund and implement shared parking for a district. The local municipality would build the central public parking structure, but would adjust the parking supplied at each structure based on shared parking demand. Source: Flickr.com 38 Page 572 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 EXAMPLES OF OTHER CITIES APPLYING THIS TECHNIQUE Parking in-lieu fees are offered in several cities in Southern California, including: • Long Beach (Downtown) • Sana Monica (Downtown) • Hermosa Beach • Palm Springs (Central Business District) • Claremont (Claremont Village District) PROS AND CONS OF THE APPROACH Parking in-lieu fees offer several advantages over minimum on-site parking for developments. For example, districts that collect in-lieu fees and build centralized public parking structures improve the pedestrian environment, increase development density, and reduce automobile through traffic. In-lieu fees can also be a mechanism to fund and implement shared parking when the city builds public parking lots that accommodate reduced shared parking demand. However, there can be a perceived difference in the attractiveness of various developments in a district if some developers choose to offer on-site parking while others pay into the in-lieu fees for a central parking structure, especially if those paying into the fund are significantly far from the parking (e.g. too far for walking). This can be solved by carefully positioning parking structures in a district or making in-lieu fees required for developers rather than optional. Also, the delay collecting the fees and building structures can result in parking undersupply in an area. Furthermore, if not paired with shared parking, the structures built from these fees can result in oversupply and inefficient parking use. APPLICATION IN DOWNTOWN PALM DESERT The City of Palm Desert should replace its minimum parking requirements with parking in-lieu fees for new developments, with developers participating in the shared parking supply instead of building on-site facilities. These funds can be put aside to help build the necessary future shared parking supply in parts of the Downtown as development outpaces existing supply. Funds can also go towards improving the pedestrian environment to ensure that people will utilize shared parking at locations more distant from their destinations. The City can use a standard price per space (for construction and maintenance) that would otherwise have been required of the development under its minimum parking requirements as a 39 Page 573 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 basis for determining the parking in-lieu fees for new developments in Downtown Palm Desert to pay the City. RECOMMENDED STRATEGY #4: PARKING CHARGES GENERAL BACKGROUND Parking charges for public parking serve a variety of uses. In some cases, charging for highly desired spaces, such as on-street spaces, serves to manage the demand and create parking space turnover. In other instances parking charges are a revenue source that can pay for streetscape improvement, maintenance, and the construction of parking garages. A key issue related to parking changes is setting the optimal level of the charges. Parking charges which are set too high may discourage parking and actually lead to less revenue than lower parking charges. Parking charges which are too low may not generate sufficient revenue and also may not be effective in managing demand. There are several items related to parking charges which include pay stations, parking validation or variable rates, and discounted employee parking. Pay stations are replacing parking meters in many cities. A pay station might be placed every block instead of at each parking space. To make their usage more convenient, many pay stations accept credit cards, cash, and coins. Historically, many parking garages and parking meters used set rates per hour which did not vary throughout the day. Some parking facilities use variable rates which might include the first 90 minutes free, and $2 per hour for each hour after that with a maximum per day of $16. By allowing the first 90 minutes to be free, there is no disincentive for casual shoppers and diners who might only be staying 30 minutes. Related to this variable pricing, some jurisdictions allow for restaurants and shops to validate parking whereby the first hour or two hours of parking are free. Validation programs are also oriented towards casual shoppers and diners. EXAMPLES OF OTHER CITIES APPLYING THIS TECHNIQUE Several cities in Southern California employ parking charges for on-street and off-street parking: • Huntington Beach • Los Angeles • Pasadena 40 Page 574 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 • Riverside • Santa Monica PROS AND CONS OF THE APPROACH Charging for parking has many advantages. For example, the City can manage demand and generate revenues. Higher turnover can increase access to retail locations and increase retail sales. Also, revenues from parking can serve a variety of purposes. Revenues can go towards building additional supply (if deemed necessary) or improving the pedestrian environment and streetscape in the area. Implementing parking charges in an area for the first time can be difficult. Residents, business owners, and other visitors to an area may not be receptive to the idea of paying for parking where they didn’t have to before, regardless of any advantages that may come from charging to parking. Also, if the parking charges aren’t monitored and adjusted to the proper price as needed they will not have the desired effect. Parking that is too inexpensive will not encourage turnover or generate enough revenue as intended. Parking that is too expensive would merely discourage patrons and make retail at a location less attractive. Prices must be variable and adjusted with regular monitoring. APPLICATION IN DOWNTOWN PALM DESERT There are potential benefits for Palm Desert to implement parking charges at locations in its Downtown as part of its Mobility Element policy of improved parking management. For example, parking meters can be installed at portions of El Paseo that currently experience high demand during certain hours of the day and low turnover. In addition to encouraging turnover and more efficient use of parking on El Paseo, this strategy can provide funds that can be used to improve the pedestrian environment or to build the needed parking supply for future development. The City should coordinate with the El Paseo Business Improvement District in deciding which locations are best suited for parking charges. Free parking in Downtown Palm Desert 41 Page 575 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 RECOMMENDED STRATEGY #5: PARKING BENEFITS DISTRICT GENERAL BACKGROUND A Parking District is an entity that is responsible for managing parking supply within a City, typically within a Downtown Area. Some tasks that a Parking District can perform would include: • Setting parking limits • Collecting parking revenues • Building and maintaining parking facilities • Operating information programs • Applying parking revenues towards streetscape renovations and other improvements to the area Parking Districts can be set up either as a body directly under the authority of a City or through a joint effort between a City and a Merchants Association or Business Improvement District. Parking Districts in California will require the City to enact an ordinance describing the boundaries, duties, and organization of the District. Revenues stay within the district, helping fund improvements. EXAMPLES OF OTHER CITIES APPLYING THIS TECHNIQUE Several cities in Southern California have Parking Districts, either managed by the City or by local businesses. These include: • Brea (administered by City and local businesses) • Pasadena (administered by Old Town businesses) • Pomona (administered by City and local businesses) • Santa Monica (administered by City) 42 Page 576 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 PROS AND CONS OF THE APPROACH One main benefit of a Parking District is that it creates a group who is focused solely on parking. Instead of tasking City Redevelopment Staff or Planning Staff with parking in addition to their regular duties, there is a single group focused on that issue. When a Parking District is composed mainly of merchants and business owners, they also have a vested interest in ensuring that there is sufficient parking and that the parking operates in an efficient manner. Also, the funds can be used for a variety of improvements including building additional parking supply, improving the pedestrian environment and streetscape in the area, security, building improvements, or anything else that local businesses deem necessary to bring patrons to the area. Also, guaranteeing that parking revenues stay within the District can help increase support for implementation. The disadvantage of a Parking District is that there is a potential for conflicts to occur between City Staff and the Merchants. These conflicts might occur because of disagreements over when to add new parking facilities, changes to parking charges and time limits, and other related issues. Problems with Parking Districts can also arise when there is turnover among the business owners and merchants if one of these people is a major participant in the District. This issue is more likely to occur within Parking Districts for smaller downtown areas. APPLICATION IN DOWNTOWN PALM DESERT The City already has the El Paseo Business Improvement District established in its Downtown. The City should work with the BID to establish a parking district that can be used to implement strategies such as parking meters, pedestrian enhancements, and streetscape beautification. The BID can work with the City to decide where meters are ideal and how they should be priced; revenue would remain within the parking district to put towards these improvements. However, all decisions of the Parking District should be subject to final approval by the City Council. This measure will ensure that the City retains final authority over the Parking District’s decisions and acts as an arbiter regarding any serious disagreements. Furthermore, the Source: PalmSprings.com 43 Page 577 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 BID’s boundaries should be expanded or adjusted to include the areas of Downtown that will fall into strategies such as shared parking. RECOMMENDED STRATEGY #6: URBAN DESIGN GENERAL BACKGROUND Urban design features can make more distant parking spaces known to commuters and enhance pedestrian connections to those spaces by making the walking trip more pleasant. This includes a variety of techniques such as: • Improving sidewalk conditions (width, quality, shading, etc.) • Implementing pedestrian-oriented wayfinding and information • Improving pedestrian crosswalks • Traffic calming Improving the pedestrian environment encourages visitors to use parking spaces that are more distant from their destination, allowing a more efficient use of the local parking supply. EXAMPLES OF OTHER CITIES APPLYING THIS TECHNIQUE Old Town Pasadena, through its Parking District, uses parking revenues to improve pedestrian facilities including those to and from parking lots and structures. 44 Page 578 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 PROS AND CONS OF THE APPROACH An advantage of improving urban design for pedestrians is that it serves all users, not just those parking and visiting the area. Any improvement to sidewalks and other facilities also affects those that are walking to the district and visiting different shops. Another advantage of improving the pedestrian environment is that it allows for a more efficient use of parking supply. Visitors can be encouraged to use more distant (perhaps underused) parking locations and walk to their destinations rather than try to find parking directly around their destination. Shared parking facilities can benefit from this. Circulation can also be improved by reducing traffic through the area, looking for parking at high-demand locations. There can be barriers to significantly improving the pedestrian design of a district. First of all, improvements can be expensive depending on the extent of the area being improved. Also, any sidewalk or landscaping improvements that affect parking or storefronts may be met with resistance from local business owners. APPLICATION IN DOWNTOWN PALM DESERT Palm Desert can use urban design to implement its other strategies. For example, improved pedestrian facilities would walking a more attractive mode. This can help the City implement its shared parking program since people would be more willing to park at a central shared location and walk a little further to retail destinations. Potential revenue sources for this include parking in-lieu fees and parking meters; the City can work in conjunction with the El Paseo Business Improvement District to decide on the best possible urban design improvements. Recommended landscape and urban design improvements in the City Center Area Plan, which aim to improve the area’s aesthetic appearance and pedestrian comfort, can be implemented as part of this strategy, although additional improvements can be implemented based on the location of future parking structures and connecting pedestrian paths. The Plan includes strategies such as median landscaping, buffered bicycle lanes, improved streetscape, intersection landscaping, and mid-block pedestrian crossings. Pedestrian scramble in Pasadena, CA. 45 Page 579 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 RECOMMENDED STRATEGY #7: TIME LIMITS AND RESTRICTIONS GENERAL BACKGROUND Time limits are employed to encourage parking turnover and are perhaps the simplest and cheapest way to control the uses of on-street parking facilities. Short-term time limits and restrictions during certain hours of the day discourage people from parking too long at on-street parking spaces directly in front of high- traffic retail locations and instead encourages them to park at other less-used parking facilities. EXAMPLES OF OTHER CITIES APPLYING THIS TECHNIQUE Parking time limits and restrictions are widely used in many Southern California cities such as Los Angeles and Riverside. This technique tends to be used in downtown districts, major retail districts, and along major corridors. PROS AND CONS OF THE APPROACH Time limits can be effective in generating turnover in more highly- desired or premium spaces. As often is the case in many downtown areas, parking issues most commonly occur only in selected areas. Time limits have the effect of encouraging employees and other long- term parkers to park in spaces without time limits, thereby freeing spaces for customers who do not require all day parking. High turnover can also have a positive impact on retail sales. Time limits are also a cheap and easy way to manage demand at certain locations. Implementing time limits at a location for the first time or adjusting existing time limits can be difficult. Residents, business owners, and other visitors to an area may be resistant to the idea of time limits where there was previously no restriction. The same can apply to more stringent restrictions at a location where time limits already exist. Business owners can feel that the time limits may discourage customers from visiting. Also, monitoring can be difficult, especially if workers or visitors attempt to evade the hourly limits through moving their car from one space to another throughout the day. Source: SafetySign.com 46 Page 580 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 APPLICATION IN DOWNTOWN PALM DESERT According to the existing conditions analysis, some on-street parking facilities in Downtown Palm Desert experience low turnover. For example, there are portions of Sage Lane, Larkspur Lane, and El Paseo east of Portola Avenue where the observed average length of stay was over three hours. Currently, there are a limited number of on-street parking spaces that have time restrictions. The City should work with local merchants to identify locations that can benefit from time restrictions, as well as decide on when time limits should be in effect and how restrictive they should be. Potential locations for time limits include those identified as having low turnover, with time limits focused on the time of day where demand was observed to be highest. The City should regularly monitor on-street parking with license plate surveys to see if there are changes in turnover that necessitate time limits at other locations. RECOMMENDED STRATEGY #8: EMPLOYER TRANSPORTATION DEMAND MANAGEMENT (TDM) PROGRAMS GENERAL BACKGROUND One way to reduce parking demand itself is Travel Demand Management (TDM) which attempts to reduce the number of persons needing or wanting to drive, and hence reduces the number of parking spaces needed. The majority of TDM strategies relate to work related trips, particularly on the employment end. TDM can be classified into three broad categories, which include: • Informational: These types of strategies provide information about ride sharing and other alternative travel modes with the thought that when more information is available about travel choices, then commuters are more likely to use modes other than driving. Most TDM plans include some level of informational strategies. • Incentives: These types of strategies provide financial incentives for the use of alternative travel modes. For example, providing free transit passes to employees is a typical TDM measure. Many TDM plans or programs have some level of financial incentives, but not all programs do so. • Disincentives: Disincentive-based strategies involve charging or assessing fees for driving or using automobiles. These types of strategies aren’t used very often, with the exception of parking charges, as previously described. 47 Page 581 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 EXAMPLES OF OTHER CITIES APPLYING THIS TECHNIQUE TDM strategies of various sorts are used throughout Southern California, although the level of implementation varies significantly. There also differences in whether Cities have mandatory or voluntary TDM programs for employers. One example is the City of Santa Monica, which requires through a City Ordinance that new developments adopt plans to reduce vehicular trips and emissions. In the City of Irvine, property owners in the Irvine Spectrum district fund the Spectrumotion program which provides financial assistance to commuters who take alternative transportation modes to the single-occupant vehicle; the program also includes emergency ride home services in case an emergency arises. With the passage of SB 743, automobile delay is being phased out as a level of service metric in favor of other measurements such as vehicle miles traveled (VMT). With this shift, recommendations are being made on thresholds and mitigations that will replace existing standards. TDM is seen as a way to reduce automobile use and thus reduce VMT impacts for new developments. With this change in level of service across California, TDM methods will likely become more popular in municipalities looking for ways to help developers mitigate impacts. PROS AND CONS OF THE APPROACH A significant positive aspect of TDM is that it provides a cost-effective way to reduce the need for parking spaces – fewer people parking has the same effect on providing sufficient parking as building additional spaces. One negative issue related to TDM is one of administration – the most effective TDM programs are those with full-time staff who aggressively promote the benefits and use of TDM. APPLICATION IN DOWNTOWN PALM DESERT Currently, the City of Palm Desert municipal code requires TDM for non-residential developments which employ 100 or more people. In the Downtown, the City can extend this to all employers, including those with fewer than 100 employees. Additionally, the City should work with the El Paseo Business Improvement District to implement TDM in the downtown. Businesses will be able to pool their and the City’s resources, including funds from parking charges, in-lieu parking fees, and other revenue sources. The businesses can Source: SunLine Transit Agency 48 Page 582 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 then implement TDM both informational strategies and incentive strategies such as transit passes. The City should also hire a dedicated TDM Coordinator or designate a staff person to fill that role. This staff person’s responsibilities would include monitoring among businesses to analyze mode share and TDM effectiveness and assess if changes in strategies are necessary. RECOMMENDED STRATEGY #9: EMPLOYER PARKING CASH-OUT GENERAL BACKGROUND Under a parking cash-out program, an employer offers to pay workers the cash value of the cost of a parking spaces that would otherwise have been provided to them, instead of offering them the parking space. Many employees choose to take this cash and commute to work with a carpool, transit, or other commute work. Generally, this strategy doesn’t cost the employer anything additional since it would otherwise have gone to paying for employee parking. EXAMPLES OF OTHER CITIES APPLYING THIS TECHNIQUE Currently, California has a parking cash-out law at the state level. The state requires certain companies, government agencies, and other employers to offer employees parking cash-out. The South Coast Air Quality Management District, which manages the Los Angeles metropolitan air basin, has its own employer-based parking cash-out rules for workplaces with more than 50 employees. The SCAQMD differs in some ways from the state law, including additional mandatory record keeping for monitoring purposes. PROS AND CONS OF THE APPROACH A parking cash-out strategy would be easy to implement. It would encourage reduced employee parking without costing the employer anything that wouldn’t have otherwise gone to paying for employee parking spaces. With the extra cash, employees can be encouraged to use other commute modes such as carpooling or public transit. It also doesn’t force employees to pay for a parking space they wouldn’t otherwise want. Source: RGBStock.com 49 Page 583 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 However, it can be hard to monitor compliance and effectiveness. At the state level, it has been difficult to monitor how many employers and employees are participating, as well as how much money employers offer to cash-out. A city with such a program would need to monitor with data from employers, perhaps through workplace surveys. SCAQMD shows that one way to do this is by mandating keeping track of employees using the program and the dollar amount each employee cashes out. APPLICATION IN DOWNTOWN PALM DESERT We recommend the City require parking cash-out for all new non-residential developments in the Downtown. All new businesses, regardless of the number of employees they have, should offer them the option of taking the cash value of a parking space. Regular monitoring by the City will be necessary to assess this strategy’s effectiveness. RECOMMENDED STRATEGY #10: PROVIDE FACILITIES FOR ALTERNATIVES TO DRIVING GENERAL BACKGROUND A parking supply issue can be addressed by changing parking demand through incentives that explore incentivizing use of other modes, e.g. new shuttle bus services, bicycle lockers, financial incentives, etc. Also, strategies that improve walkability in an area could encourage lower automobile ownership and use. EXAMPLES OF OTHER CITIES APPLYING THIS TECHNIQUE The City of Santa Monica offers several alternative transportation facilities, especially for bicyclists. Amenities such as short and long term parking, repair facilities, secured parking, commuter lockers and showers, and others are included in the city, mainly in its downtown area. The Santa Monica Bike Center serves as a central location offering these amenities for bicyclists. The City of Irvine offers its iShuttle service. Connections serve employees between the Tustin Metrolink Station and the Irvine Business Center and the Irvine Metrolink Station and the Irvine Spectrum district, providing a link between rail transit and employment centers. PROS AND CONS OF THE APPROACH One advantage of this strategy is that some facilities can be implemented relatively inexpensively, such as short-term bicycle parking and long-term secured bicycle lockers. If implemented correctly, it can reduce 50 Page 584 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 the need for additional expensive parking. And these facilities can serve a variety of users, including employees and retail shoppers. However, facilities might not be very effective if implemented in isolated instances, not in combination with other strategies. For example, additional bicycle parking facilities would be ineffective if bicycle lanes in an area are lacking or non-existent. Also, if parking is abundant and extremely free or cheap, people would see little reason to utilize these alternative transportation facilities. APPLICATION IN DOWNTOWN PALM DESERT The City’s General Plan Mobility Element stresses Palm Desert’s commitment to providing alternative transportation facilities. Goals include livable streets that accommodate all forms of travel, adequate pedestrian facilities, bikeways, sufficient bicycle parking at developments, and access to transit stops. The City should work with the El Paseo Business Improvement District to meet these goals and implement alternative transportation facilities where needed. Possible revenue sources for this strategy include parking meters and parking in-lieu fees. This can go hand-in-hand with the urban design strategy to improve pedestrian facilities. Potential alternative facility improvements in Downtown include additional bicycle parking and improving transit stops with shading and bus information. Example of a lack of facilities on El Paseo. Example of suitable bicycle parking facilities. 51 Page 585 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 RECOMMENDED STRATEGY #11: INTELLIGENT TRANSPORTATION SYSTEMS (ITS) GENERAL BACKGROUND ITS can help guide drivers to available parking. ITS has been effectively been used both district wide and in large parking structures to provide “live information” about available spaces at each level and in different public parking facilities throughout a district. An example of ITS in a parking context is a smartphone app that tells users where there is available parking in a district, how many spaces there are at each location, and the cost to park there. With this information, drivers can proceed to available parking without circling blocks looking for open spaces. EXAMPLES OF OTHER CITIES APPLYING THIS TECHNIQUE The City of Los Angeles recently unveiled its LA Express Park program in a section of downtown Los Angeles. Electronic signs in the area display key information on available parking at structures, and smartphone app users can access that information directly on their phones. Sensors under parking spaces tell the system if they are currently occupied or not. At the same time, this real-time occupancy data is used to adjust parking meter rates rapidly based on current demand conditions. PROS AND CONS OF THE APPROACH With real-time information in their hands, drivers can proceed immediately to available parking without searching along streets and lots and creating unnecessary traffic. Also with the increased proliferation of smartphone technology, smartphone apps can reach a wide population and make this strategy extremely effective. However, this technology can be expensive to implement. For example, there is the issue of installing the occupancy sensor technology in existing parking structures. Also, real-time parking supply apps are still relatively new and experimental, with effectiveness hinging on the result of smaller-scale pilot programs. Source: LAExpressPark.org 52 Page 586 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 APPLICATION IN DOWNTOWN PALM DESERT ITS applications for real-time parking supply and cost are still relatively recent. We recommend that the City hold off on implementing any parking apps until the results of local pilot programs are made available in the next three years. The City should stay up to date on real-time parking app trends as part of its Mobility Element policy of regularly monitoring and evaluating new vehicle technologies. 53 Page 587 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 STRATEGY IMPLEMENTATION Downtown Palm Desert has significant excess parking supply. Therefore, the City shouldn’t require additional parking for new developments for the near- and mid-term since the existing supply can accommodate significant additional demand under a shared parking arrangement. However, additional parking would eventually be necessary in some areas of Downtown Palm Desert. Therefore the City should anticipate this future need and build central shared parking structures or lots in the areas that will need it. Based on our analysis, potential parking additions include a parking structure located between Subareas 1 and 2 and a surface parking lot located in Subarea 4. However, the City should regularly monitor parking demand as development increases before making decisions on parking supply locations. This section of the report outlines how the City can implement the recommended parking management strategies such as additional parking supply and shared parking. It should be noted that any one of the previously referenced strategies could be implemented individually; however, they are most effective if implemented as part of a comprehensive plan for the area and in a phased manner. As such, we have grouped the strategies together and recommended timeframes for implementation (organized as near- term, mid-term, and long-term). NEAR-TERM (1-2 YEARS) In the near-term, the City should focus on implementing shared parking and setting up several of the recommended parking management strategies. Specific details are given below. • The City should begin implementation of shared parking in Downtown Palm Desert. o New developments should pay parking in-lieu fees instead of supplying minimum on-site parking, since current parking supply in the area is more than enough under a shared parking arrangement. o The City should also require employers to offer parking cash-out to their employees. • The City should begin intensive coordination with the El Paseo Business Improvement District to more effectively implement many of the recommended strategies. o The City and the El Paseo BID can come to an agreement on where parking meters and time limits should be implemented, and how much the charges and limits should be. There should be biannual parking studies to see if there should be any adjustments to charges, limits, and locations. 54 Page 588 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 o The City and the El Paseo BID should create a Parking District, which would be enacted in a City ordinance. Part of this would involve coming to an agreement on how to collect parking revenues, how to distribute the revenues across the BID, and how to make decisions on applying funds to projects and improvements. o The City should encourage TDM for all non-residential developments in Downtown Palm Desert. A City-appointed TDM coordinator should work with the BID to create a program where businesses can pool their resources for a TDM program, which would be monitored by the coordinator for usage and effectiveness. Example strategies include SunLine transit passes and carpool assistance. o Consideration should be made towards expanding the BID’s boundaries to incorporate more businesses into the Parking District and the pooled TDM resources. • The City should make an effort to identify prime locations for pedestrian improvements and improved alternative facilities (e.g. bus stops that need shade, retail areas lacking bicycle parking, etc.). This can take place as a concerted citywide effort to address the General Plan Mobility Element’s goals for improving pedestrian facilities, bicycle network connectivity and amenities, and access to transit stops, as well as City Center Area Plan strategies pertaining to pedestrian and bicycle facilities and amenities. MID-TERM (3-6 YEARS) In the mid-term, the City should focus on finding suitable locations for future parking structures or lots to accommodate future shared parking demand due to increased development. Also, the City should focus on monitoring the strategies previously implemented. • The City should conduct bi-annual parking studies to make sure that shared parking is being utilized efficiently as an extension of citywide transportation facility monitoring laid out in the General Plan Mobility Element. • The City should continue coordination with the El Paseo BID. o Conduct studies to see if parking charges and time limits are effective or if they need to be adjusted, either in location or amount. o The TDM coordinator should also monitor usage and effectiveness of TDM programs and monitor usage of the parking cash-out program. o The City and the BID should begin implementing pedestrian improvements around shared parking locations and alternative transportation improvements throughout Downtown, using funds such as parking charges and parking in-lieu fees. 55 Page 589 of 1128 Downtown Palm Desert DRAFT Parking Management Plan March 2016 o The City and BID should begin identifying possible sites for future shared parking structures in areas that need additional future supply in anticipation of demand outstripping supply. Current funds can be used for initial steps such as any necessary studies and preliminary designs. • With more information available in the mid-term, and with the results of pilot programs available, smartphone apps can be more closely studied for possible implementation. This can include a smartphone app that shows users parking supply and costs. o If implemented, the necessary sensors can be built into the cost of future parking structures. However, the cost of incorporating the technology into existing parking should be studied for financial feasibility. LONG-TERM (6+ YEARS) In the long-term, the City should focus on building additional parking supply where deemed necessary, with structures or lots centrally located in the subareas where demand exceeds the shared parking supply. Also, the City should continue to monitor the implemented parking management strategies. Biannual parking studies in the area will provide valuable information on whether there are any inefficiencies in parking demand or if more supply is necessary. • Once development outpaces the shared parking supply in some Downtown areas, additional shared parking structures would be necessary. o The City should anticipate this with its parking studies and by monitoring development levels. o With collaboration from the El Paseo BID, the City should begin building the necessary centrally-located shared parking structures. o Recommended shared parking ratios for these future parking supply are 1.6 spaces per dwelling unit (residential) and 2.1 spaces per thousand square feet (non-residential). o Funds include parking charges and parking in-lieu fees. o Pedestrian improvements must be applied around these new structures to ensure effectiveness and ensuring people are willing to walk further to these structures. 56 Page 590 of 1128 APPENDIX A: PARKING COUNT DATA Page 591 of 1128 Project #:15-6102 Day Wednesday City:Palm Desert Date:7/1/2015 LOT 4 Regular Subtotal Regular Enterprise Customer Parking Subtotal Regular Subtotal Regular Regular Reserved Unit 1 Reserved Unit 2 Reserved Unit 3 Reserved Unit 4 Reserved Unit 5 Reserved Unit 6 Reserved Unit 7 Reserved Unit 8 Subtotal Spaces 37 2 39 12 2 4 18 17 1 18 13 12 1 1 2 2 2 2 1 2 2 27 6:00 0 0 0 7 0 0 7 17 0 17 0 0 0 0 0 0 0 0 0 0 0 0 7:00 6 0 6 8 0 0 8 17 0 17 1 0 0 0 0 0 0 0 0 0 0 0 8:00 7 0 7 11 0 1 12 16 0 16 2 1 0 0 0 0 0 0 0 0 0 1 9:00 18 0 18 10 0 2 12 11 1 12 6 2 0 0 0 0 0 0 0 0 0 2 10:00 22 0 22 12 0 3 15 6 0 6 4 4 0 1 0 1 0 0 0 0 0 6 11:00 24 0 24 10 0 3 13 12 0 12 4 7 0 1 1 0 0 0 0 0 0 9 12:00 21 0 21 11 1 2 14 11 0 11 2 4 0 1 1 2 2 2 1 2 0 15 13:00 23 0 23 12 0 2 14 13 0 13 4 3 0 1 2 2 2 1 1 2 0 14 14:00 19 0 19 11 0 2 13 8 1 9 8 3 0 1 1 1 1 2 1 2 0 12 15:00 21 0 21 8 0 2 10 9 1 10 7 4 0 1 1 1 1 1 1 2 0 12 16:00 22 0 22 9 1 2 12 10 1 11 7 4 0 1 1 1 1 2 1 1 0 12 17:00 19 0 19 11 0 3 14 11 0 11 3 4 0 0 1 1 2 1 1 2 0 12 18:00 1 0 1 12 0 4 16 10 1 11 4 4 0 0 0 0 2 1 1 1 0 9 19:00 1 0 1 5 0 0 5 17 1 18 5 3 0 0 0 0 0 1 1 1 0 6 20:00 2 0 2 5 0 0 5 17 1 18 6 2 0 0 0 0 0 1 0 0 0 3 LOT 10 LOT 12 Regular Open Lot Subtotal Regular Subtotal Regular No Parking Open Lot Subtotal Regular Subtotal Regular Regular Subtotal Regular Regular Subtotal Spaces 15 1 16 17 1 18 26 2 1 9 Approx 38 20 2 22 10 10 1 11 5 9 1 10 6:00 0 0 0 0 3 0 3 5 0 0 1 6 0 0 0 1 0 0 0 0 1 0 1 7:00 0 0 1 1 3 0 3 5 0 0 1 6 0 0 0 1 0 0 0 0 2 0 2 8:00 4 0 1 5 3 0 3 5 0 0 1 6 0 0 0 3 0 0 0 1 3 0 3 9:00 4 0 1 5 3 0 3 5 1 0 1 7 1 0 1 4 0 0 0 1 4 0 4 10:00 4 0 1 5 5 0 5 4 1 0 3 8 4 0 4 6 2 0 2 2 3 0 3 11:00 4 0 1 5 4 0 4 4 1 0 4 9 5 0 5 6 2 0 2 3 3 0 3 12:00 4 0 2 6 4 0 4 6 1 0 3 10 5 0 5 6 2 0 2 3 4 0 4 13:00 6 0 2 8 5 0 5 5 1 0 4 10 4 0 4 6 2 0 2 3 2 0 2 14:00 4 0 1 5 3 1 4 4 1 0 8 13 6 0 6 6 2 0 2 3 3 0 3 15:00 4 0 1 5 4 0 4 4 0 1 7 12 6 0 6 6 2 0 2 2 3 0 3 16:00 4 0 1 5 5 1 6 4 0 1 6 11 3 0 3 6 2 0 2 1 4 0 4 17:00 1 0 2 3 4 0 4 6 0 0 7 13 3 0 3 2 0 0 0 1 5 0 5 18:00 1 0 1 2 3 0 3 6 0 0 8 14 1 0 1 0 0 0 0 0 3 0 3 19:00 1 0 1 2 3 0 3 5 0 1 8 14 1 0 1 0 0 0 0 0 3 0 3 20:00 0 0 1 1 3 0 3 2 0 1 7 10 0 0 0 0 0 0 0 0 3 0 3 LOT 18 LOT 19 Regular Matress Showroon Customer Parking Subtotal Regular Subtotal Regular Reserved Open Lot Subtotal Regular Subtotal Regular Open Lot Regular Subtotal Regular Private Subtotal Spaces 13 1 14 22 4 26 41 3 2 46 18 1 19 15 4 1 5 23 2 1 26 6:00 1 0 1 0 0 0 1 0 0 1 2 0 0 0 0 0 0 0 0 8 0 0 8 7:00 3 0 3 0 0 0 1 0 0 1 2 0 0 0 1 0 0 0 0 9 0 0 9 8:00 4 0 4 0 0 0 1 0 1 0 2 0 0 0 1 0 2 0 2 9 0 0 9 9:00 6 0 6 0 0 0 6 0 1 0 7 1 0 1 4 2 2 0 2 9 0 0 9 10:00 5 0 5 9 0 9 10 0 2 2 14 2 0 2 4 2 2 0 2 9 1 1 11 11:00 4 0 4 12 0 12 11 0 2 2 15 2 0 2 6 3 2 0 2 9 1 1 11 12:00 3 0 3 10 1 11 8 0 1 3 12 3 0 3 5 2 1 0 1 9 0 1 10 13:00 4 0 4 6 0 6 9 0 0 4 13 2 0 2 5 5 2 0 2 11 1 1 13 14:00 5 0 5 15 1 1 9 0 1 4 14 2 0 2 5 7 3 0 3 10 1 1 12 15:00 5 0 5 10 0 10 10 0 0 3 13 2 0 2 4 4 3 0 3 13 0 0 13 16:00 5 0 5 9 3 12 11 0 0 3 14 2 0 2 4 4 3 0 3 13 1 0 14 17:00 2 0 2 7 2 9 9 0 0 4 13 2 0 2 3 0 3 0 3 13 0 0 13 18:00 1 0 1 3 1 4 5 0 0 5 10 1 0 1 2 1 0 0 0 13 0 0 13 19:00 0 0 0 4 0 4 5 0 0 4 9 1 0 1 0 2 0 0 0 11 0 0 11 20:00 1 0 1 0 0 0 5 0 0 3 8 0 0 0 0 1 0 0 0 10 0 0 10 LOT 22 LOT 24 LOT 26 LOT 29 Regular Regular Reserved Subtotal Regular Regular Green Subtotal Regular Regular Subtotal Regular Subtotal Regular Wells Fargo Regular Wells Fargo Regular Subtotal Spaces 15 113 5 2 120 10 20 2 17 39 5 6 2 8 9 1 10 6 16 1 55 3 75 6:00 2 2 0 0 2 1 2 0 0 2 0 1 0 1 0 0 0 0 0 0 6 0 6 7:00 2 8 0 0 8 1 2 0 2 4 0 2 0 2 0 0 0 0 1 0 12 0 13 8:00 1 9 0 0 9 1 2 0 2 4 4 3 0 3 4 0 4 1 1 0 15 1 17 9:00 4 16 0 0 16 2 7 0 5 12 4 4 0 4 0 0 0 1 6 0 21 1 28 10:00 3 22 1 0 23 3 16 1 9 26 4 2 0 2 1 0 1 1 6 0 42 1 49 11:00 5 43 0 0 43 4 15 1 5 21 5 3 0 3 1 0 1 1 4 0 31 1 36 12:00 5 63 1 1 65 6 12 1 6 19 3 2 0 2 1 0 1 1 5 1 42 2 50 13:00 2 46 0 0 46 8 16 1 9 26 4 2 0 2 1 0 1 2 5 0 42 1 48 14:00 3 49 0 0 49 7 10 1 8 19 4 3 0 3 3 0 3 2 7 0 38 1 46 15:00 3 46 1 1 48 6 13 1 10 24 4 3 0 3 2 0 2 2 6 0 30 1 37 LOT 13 LOT 14 LOT 16 LOT 17 LOT 20 LOT 21LOT 15 LOT 7 LOT 8 LOT 9 LOT 11LOT 6 LOT 23 LOT 25 LOT 27 LOT 28 LOT 30 TIME TIME TIME TIME Prepared by National Data & Surveying Services PARKING LOT STUDY LOT 1 LOT 2 LOT 3 LOT 5 Page 592 of 1128 Project #:15-6102 Day Wednesday City:Palm Desert Date:7/1/2015 Prepared by National Data & Surveying Services PARKING LOT STUDY 16:00 3 40 0 0 40 5 9 0 9 18 4 3 0 3 3 0 3 0 6 0 25 0 31 17:00 3 43 0 0 43 4 14 2 9 25 2 2 0 2 1 0 1 1 8 0 21 0 29 18:00 1 38 0 0 38 3 11 2 10 23 0 0 0 0 1 0 1 1 0 0 20 0 20 19:00 2 25 0 0 25 1 10 0 9 19 1 0 0 0 0 0 0 1 2 0 18 0 20 20:00 0 17 0 0 17 1 2 1 5 8 0 0 0 0 0 0 0 0 2 0 14 1 17 Regular Subtotal Regular Curbside Service Subtotal Regular Subtotal Regular 10 Minutes Subtotal Regular Subtotal Regular MYA Studio Salon Electric Charging Loading Subtotal Spaces 42 6 48 64 4 4 72 13 2 15 209 7 1 217 21 2 23 182 14 2 1 6 205 6:00 0 0 0 0 0 0 0 0 0 0 7 0 0 7 0 0 0 3 0 0 0 0 3 7:00 0 0 0 1 0 0 1 0 0 0 12 0 0 12 0 0 0 3 0 0 0 0 3 8:00 1 0 1 1 0 0 1 0 0 0 19 1 0 20 0 0 0 17 0 0 0 0 17 9:00 3 0 3 1 0 0 1 0 0 0 34 0 0 34 1 0 1 38 0 0 0 1 39 10:00 7 0 7 6 0 0 6 1 0 1 38 0 0 38 3 0 3 59 0 1 0 1 61 11:00 9 1 10 10 0 0 10 2 0 2 52 1 0 53 7 2 9 73 0 1 0 1 75 12:00 14 3 17 21 1 0 22 2 0 2 74 2 0 76 13 1 14 61 0 1 0 2 64 13:00 22 3 25 23 2 1 26 1 0 1 78 2 1 81 16 2 18 60 0 0 0 1 61 14:00 14 3 17 28 1 0 29 1 0 1 66 0 1 67 14 0 14 61 0 0 0 2 63 15:00 13 2 15 19 0 0 19 1 0 1 48 1 0 49 11 0 11 48 0 0 0 1 49 16:00 9 3 12 22 2 2 26 1 0 1 44 0 0 44 13 1 14 35 0 0 0 3 38 17:00 10 0 10 26 1 0 27 1 0 1 43 0 0 43 9 0 9 33 0 0 0 0 33 18:00 8 0 8 30 2 1 33 0 0 0 48 0 0 48 11 0 11 18 0 0 0 0 18 19:00 4 0 4 27 1 1 29 0 0 0 45 0 0 45 9 0 9 15 0 0 0 0 15 20:00 5 0 5 22 2 0 24 0 0 0 32 0 0 32 3 0 3 7 0 0 0 0 7 LOT 40 LOT 42 Regular Carport Subtotal Regular Loading Uptown Diagnostics Subtotal Regular Subtotal Regular Regular Reserved Subtotal Under Construction Regular Illegal Subtotal Spaces 29 3 29 61 105 8 1 1 115 31 1 32 50 18 2 30 50 96 2 98 6:00 0 0 0 0 3 0 0 0 3 0 0 0 1 1 0 6 7 12 0 0 12 7:00 0 0 1 1 6 1 0 0 7 0 0 0 4 1 0 7 8 12 0 0 12 8:00 0 0 2 2 10 0 0 0 10 1 0 1 6 1 0 13 14 23 0 0 23 9:00 0 0 10 10 22 0 0 0 22 11 0 11 15 3 0 15 18 30 0 0 30 10:00 2 0 13 15 34 0 0 0 34 11 0 11 16 6 0 15 21 36 0 0 36 11:00 2 0 14 16 46 3 0 0 49 12 0 12 23 3 0 14 17 35 0 0 35 12:00 4 0 12 16 53 0 0 0 53 12 0 12 19 5 1 13 19 40 0 0 40 13:00 1 0 11 12 53 0 0 0 53 8 0 8 13 8 0 12 20 42 0 0 42 14:00 3 0 10 13 47 0 0 0 47 11 0 11 17 5 0 13 18 39 0 0 39 15:00 1 0 10 11 31 0 0 0 31 8 0 8 16 6 0 12 18 30 0 0 30 16:00 2 0 7 9 30 0 0 0 30 6 0 6 15 5 0 10 15 23 0 0 23 17:00 1 0 7 8 31 0 0 0 31 2 0 2 14 5 0 6 11 25 0 0 25 18:00 1 0 2 3 27 0 0 0 27 2 0 2 12 4 0 4 8 23 0 0 23 19:00 0 0 2 2 30 0 0 0 30 2 0 2 8 4 0 3 7 12 0 1 13 20:00 0 0 0 0 24 0 0 0 24 1 0 1 9 1 0 3 4 6 0 1 7 Regular Illegal Subtotal Regular No Parking Loading Subtotal Regular 20 Minutes Subtotal No Parking Hensen's Center Subtotal Regular Subtotal Regular Subtotal Spaces 10 2 12 59 3 2 3 67 1 3 4 16 2 12 30 170 7 177 15 1 16 6:00 0 0 0 0 4 0 1 0 5 0 0 0 0 0 6 6 18 0 18 0 0 0 7:00 0 0 0 0 11 0 1 0 12 1 1 2 1 0 6 7 24 0 24 1 0 1 8:00 1 0 0 1 16 1 1 0 18 1 0 1 1 0 7 8 38 1 39 1 0 1 9:00 3 0 0 3 17 1 1 0 19 1 0 1 1 0 9 10 58 3 61 3 0 3 10:00 3 0 1 4 28 1 1 1 31 1 0 1 4 0 8 12 74 2 76 6 1 7 11:00 4 0 0 4 27 1 1 0 29 1 0 1 7 0 9 16 90 2 92 8 1 9 12:00 0 0 0 0 32 0 1 2 35 0 0 0 8 0 8 16 91 3 94 8 1 9 13:00 0 0 0 0 29 0 1 1 31 0 0 0 8 2 10 20 89 2 91 6 1 7 14:00 1 0 0 1 29 1 1 0 31 0 0 0 6 1 10 17 77 3 80 7 1 8 15:00 1 0 0 1 26 0 1 1 28 0 0 0 9 1 8 18 76 4 80 7 1 8 16:00 1 0 0 1 25 1 1 1 28 0 0 0 6 0 7 13 65 3 68 7 1 8 17:00 1 0 0 1 17 0 1 2 20 0 0 0 5 0 8 13 50 2 52 3 1 4 18:00 1 0 0 1 21 0 1 3 25 0 0 0 2 0 8 10 35 1 36 3 0 3 19:00 1 0 0 1 22 0 1 3 26 0 0 0 1 0 6 7 21 1 22 3 0 3 20:00 2 0 0 2 24 0 1 1 26 0 0 0 1 0 6 7 25 0 25 3 0 3 LOT 50 Regular Regular Loading Electric Charging No Parking 10pm-7am Unmarked at Gas Station Illegal Subtotal Regular Green 10 Minutes Eletric Charging 2 Hours Loading Bank Regular Bank Carport Regular Carport Subtotal Spaces 13 450 15 2 1 4 472 370 3 3 2 8 9 5 32 2 6 1 441 6:00 0 50 1 0 0 0 10 1 62 20 0 0 0 0 0 0 0 0 0 0 20 7:00 0 51 1 0 0 0 10 2 64 34 0 0 0 0 0 0 0 0 0 0 34 8:00 1 74 1 0 0 0 11 2 88 35 0 0 0 0 0 0 5 0 0 0 40 9:00 1 121 1 0 0 1 8 2 133 83 0 2 0 0 1 1 16 0 2 0 105 10:00 3 165 1 0 0 1 9 3 179 166 0 2 0 5 1 0 14 1 3 0 192 11:00 5 184 3 0 0 1 9 3 200 201 0 1 1 4 1 0 12 0 3 0 223 LOT 37 LOT 49LOT 48LOT 47LOT 46LOT 45LOT 44 LOT 43LOT 41LOT 39LOT 38 LOT 31 Lot 36Lot 35LOT 34LOT 33LOT 32 TIME TIME TIME TIME LOT 51 LOT 52 Page 593 of 1128 Project #:15-6102 Day Wednesday City:Palm Desert Date:7/1/2015 Prepared by National Data & Surveying Services PARKING LOT STUDY 12:00 7 199 5 0 0 1 8 2 215 192 0 1 1 3 1 0 7 1 3 0 209 13:00 5 199 6 0 0 1 8 2 216 173 0 0 0 4 0 0 10 0 0 0 187 14:00 5 152 1 0 0 1 8 2 164 182 0 2 1 3 1 1 11 1 2 0 204 15:00 4 141 2 1 0 1 8 3 156 145 0 0 1 4 2 2 10 1 2 0 167 16:00 4 147 2 1 0 2 8 3 163 147 0 0 1 5 0 0 20 2 2 0 177 17:00 6 131 3 0 0 0 6 1 141 129 0 0 1 3 0 0 16 0 1 0 150 18:00 5 110 5 0 0 0 6 1 122 46 0 0 0 0 0 0 9 0 1 0 56 19:00 4 91 3 0 0 0 9 1 104 41 0 0 0 0 0 0 3 0 0 0 44 20:00 2 91 4 0 0 0 9 1 105 20 0 0 0 0 0 0 0 0 0 0 20 Regular Palm Desert Escrow 30 Minutes Dawn Swajian Subtotal Regular Subtotal Regular Subtotal Regular Compact Subtotal Spaces 122 13 7 5 1 148 19 1 20 35 2 37 4 1 1 6 6:00 4 0 0 0 0 4 4 0 4 0 0 0 0 0 0 0 7:00 5 0 0 0 0 5 4 0 4 0 0 0 0 0 0 0 8:00 10 0 0 0 0 10 5 0 5 1 0 1 0 0 0 0 9:00 25 0 4 1 0 30 3 0 3 5 0 5 0 0 0 0 10:00 29 0 5 0 0 34 8 1 9 9 0 9 0 0 0 0 11:00 28 1 4 2 0 35 9 0 9 6 1 7 0 0 0 0 12:00 23 0 4 1 0 28 8 0 8 5 0 5 0 0 0 0 13:00 22 0 4 1 0 27 10 0 10 9 0 9 0 0 0 0 14:00 20 0 4 0 0 24 6 0 6 10 0 10 0 0 0 0 15:00 16 0 4 1 0 21 7 0 7 5 0 5 0 0 0 0 16:00 13 0 5 1 1 20 5 0 5 9 1 10 0 0 0 0 17:00 10 0 1 1 1 13 3 0 3 1 0 1 0 0 0 0 18:00 7 0 1 0 0 8 8 1 9 1 0 1 0 0 0 0 19:00 4 0 0 0 0 4 5 0 5 2 0 2 0 0 0 0 20:00 1 0 0 0 0 1 2 0 2 1 0 1 0 0 0 0 LOT 58 LOT 59 Regular CPI Optimal Health PCA Reserved Gregory Swajian PRO Phillip Podiatry Dental Only Subtotal Regular Regular Regular Subtotal Regular Green 20 Minutes Yellow Subtotal Spaces 25 5 3 3 2 1 1 1 1 1 43 6 8 11 1 12 23 2 1 5 1 32 6:00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 7:00 1 0 0 0 1 0 0 0 0 0 2 0 0 0 0 0 0 0 0 0 0 0 8:00 2 0 0 0 1 0 0 0 0 1 4 1 0 0 0 0 2 0 0 0 0 2 9:00 9 0 1 0 1 0 0 1 0 1 13 1 0 0 0 0 4 0 1 3 1 9 10:00 11 0 1 0 2 1 1 1 0 1 18 1 0 3 0 3 5 0 1 1 0 7 11:00 10 0 1 0 2 1 0 1 1 1 17 1 0 3 0 3 6 0 1 2 1 10 12:00 9 0 1 0 2 1 0 1 0 0 14 1 0 3 0 3 5 0 1 2 1 9 13:00 10 0 1 0 2 1 0 1 1 1 17 2 0 7 0 7 6 0 1 2 0 9 14:00 7 0 0 0 2 1 1 1 1 1 14 1 0 6 0 6 5 0 1 1 0 7 15:00 7 0 2 0 1 0 0 1 1 1 13 1 0 3 0 3 4 0 1 3 0 8 16:00 4 0 2 0 1 1 0 1 0 0 9 0 0 4 0 4 3 0 1 4 0 8 17:00 3 0 0 0 1 1 0 0 0 0 5 0 0 1 0 1 4 0 1 0 0 5 18:00 2 0 0 0 1 0 0 0 0 0 3 0 0 1 0 1 1 0 0 0 0 1 19:00 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 20:00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 LOT 64 Regular Subtotal Regular Subtotal Regular Regular Reserved Subtotal Regular Golf Low Emitting Fuel Apple Store Customer Pick Up Only Subtotal Regular 15 min Golf Cart Compact Subtotal Spaces 195 4 199 132 6 138 48 169 9 8 186 153 7 12 10 2 184 322 26 1 44 78 471 6:00 1 0 1 2 0 2 0 2 0 1 3 4 0 0 0 0 4 26 0 0 0 1 27 7:00 1 0 1 4 0 4 0 2 0 1 3 3 0 0 0 0 3 33 0 0 0 3 36 8:00 12 0 12 10 0 10 3 5 0 1 6 10 0 0 0 0 10 58 0 0 0 5 63 9:00 28 0 28 10 1 11 4 24 1 1 26 26 0 0 0 0 26 120 0 0 0 13 133 10:00 39 0 39 16 0 16 6 41 1 1 43 50 0 0 1 0 51 175 1 0 0 17 193 11:00 46 1 47 19 0 19 6 42 3 1 46 81 2 0 1 1 85 183 4 1 0 20 208 12:00 66 2 68 18 0 18 4 43 2 1 46 79 2 0 1 1 83 225 3 0 0 19 247 13:00 79 2 81 28 1 29 4 40 2 1 43 100 1 0 2 2 105 240 2 0 0 19 261 14:00 82 1 83 26 0 26 6 36 1 1 38 94 2 0 3 1 100 321 3 0 0 21 345 15:00 55 1 56 27 2 29 5 43 2 1 46 98 2 0 4 1 105 204 1 0 0 17 222 16:00 48 0 48 20 0 20 5 38 2 1 41 105 1 0 4 2 112 184 2 1 0 20 207 17:00 52 2 54 21 1 22 3 29 1 1 31 93 2 0 3 2 100 173 2 1 0 21 197 18:00 43 2 45 20 1 21 1 27 1 1 29 78 3 0 2 1 84 157 3 1 1 15 177 19:00 34 2 36 20 1 21 1 18 0 1 19 40 1 0 1 0 42 86 2 1 1 6 96 20:00 20 1 21 26 0 26 1 16 2 1 19 25 0 0 1 0 26 53 0 0 1 4 58 Regular 15 Minutes Golf Cart Compact Subtotal Reg Subtotal Regular Customer Parking Reserved Self Parking Subtotal Reg Subtotal Reg Subtotal Reg Subtotal Spaces 337 13 5 8 81 444 45 2 47 78 6 3 4 21 112 45 3 48 20 1 21 86 3 89 6:00 3 0 0 0 0 3 1 0 1 2 1 0 0 0 3 0 0 0 0 0 0 1 0 1 7:00 7 0 1 0 0 8 2 0 2 1 1 0 0 1 3 1 0 1 0 0 0 1 0 1 TIME LOT 53 LOT 54 LOT 55 LOT 56 TIME TIME LOT 57 LOT 60 LOT 66LOT 65LOT 63LOT 62 LOT 61 LOT 67 Lower Level TIME LOT 72LOT 71LOT 70LOT 69LOT 68LOT 67 Upper Level Page 594 of 1128 Project #:15-6102 Day Wednesday City:Palm Desert Date:7/1/2015 Prepared by National Data & Surveying Services PARKING LOT STUDY 8:00 13 0 1 0 0 14 1 0 1 5 2 0 0 0 7 1 0 1 0 0 0 3 0 3 9:00 24 0 0 0 0 24 9 0 9 12 1 0 1 3 17 3 0 3 3 0 3 22 0 22 10:00 28 0 1 0 0 29 15 0 15 19 1 0 1 5 26 3 0 3 3 0 3 22 0 22 11:00 29 2 1 0 0 32 15 0 15 30 2 1 2 5 40 2 0 2 5 0 5 27 2 29 12:00 43 4 1 0 0 48 16 0 16 38 3 2 2 12 57 2 0 2 5 0 5 27 1 28 13:00 47 1 0 0 0 48 20 0 20 31 2 0 0 16 49 1 0 1 4 0 4 26 0 26 14:00 44 2 0 0 0 46 23 0 23 29 2 0 3 9 43 2 0 2 4 0 4 26 0 26 15:00 31 1 0 0 0 32 21 0 21 26 2 1 3 5 37 1 0 1 5 0 5 26 0 26 16:00 35 0 0 0 0 35 14 1 15 30 3 1 3 10 47 1 0 1 5 0 5 20 0 20 17:00 45 2 0 0 0 47 11 1 12 24 3 2 3 11 43 1 0 1 2 0 2 12 0 12 18:00 69 6 0 0 0 75 13 0 13 47 5 3 0 16 71 1 0 1 0 0 0 5 0 5 19:00 73 5 0 0 0 78 11 0 11 43 3 2 0 17 65 0 0 0 0 0 0 5 0 5 20:00 43 2 0 0 0 45 10 0 10 41 1 1 1 12 56 0 0 0 0 0 0 7 0 7 Regular Subtotal Regular Subtotal Regular Subtotal Regular Authorized Vehicles Only Subtotal Regular Carport RSVD PK Only RSVD For DLI RSVD For Managment RSVD James P.H.RSVD Dennis H.RSVD APS Subtotal Spaces 7 1 8 40 2 42 17 2 19 21 13 34 54 5 17 2 1 1 1 1 2 84 6:00 0 0 0 2 0 2 0 0 0 0 0 0 2 0 0 0 0 0 0 0 0 2 7:00 0 0 0 2 0 2 1 0 1 0 1 1 3 0 0 0 0 0 0 0 0 3 8:00 0 0 0 5 0 5 1 0 1 0 2 2 11 0 10 0 0 0 0 0 1 22 9:00 0 0 0 4 0 4 3 1 4 1 3 4 21 1 12 0 0 1 1 0 1 37 10:00 0 0 0 5 0 5 3 0 3 2 4 6 21 1 12 0 0 1 1 0 1 37 11:00 3 1 4 5 0 5 2 0 2 4 4 8 26 0 11 1 0 1 1 1 0 41 12:00 1 0 1 6 0 6 6 1 7 3 2 5 20 0 12 1 0 1 0 0 1 35 13:00 0 1 1 3 0 3 8 2 10 5 2 7 20 0 7 1 0 1 1 0 1 31 14:00 0 1 1 3 0 3 3 1 4 1 2 3 26 0 8 1 1 0 1 0 1 38 15:00 1 0 1 4 0 4 5 0 5 1 2 3 26 1 8 1 1 0 1 1 1 40 16:00 1 0 1 4 0 4 5 0 5 4 2 6 18 0 7 1 1 0 1 1 1 30 17:00 6 1 7 10 2 12 2 0 2 1 2 3 6 0 4 1 1 0 0 1 1 14 18:00 7 1 8 10 1 11 1 0 1 1 0 1 6 0 1 1 0 0 0 1 1 10 19:00 7 0 7 4 1 5 0 0 0 0 0 0 4 0 1 1 0 0 0 1 0 7 20:00 5 0 5 0 0 0 0 0 0 1 0 1 1 0 0 0 0 0 0 0 0 1 LOT 80 Regular Driveway Subtotal Reg Subtotal Regular Reg Visitor Carport Illegal Subtotal Spaces 24 2 2 Approx 28 54 4 58 11 29 10 59 165 263 6:00 0 0 0 0 1 0 1 0 1 0 1 9 0 11 7:00 1 0 0 1 6 0 6 1 2 0 7 22 0 31 8:00 4 0 1 5 13 0 13 3 8 1 11 42 0 62 9:00 12 0 2 14 14 1 15 3 8 2 18 63 2 93 10:00 10 0 2 12 23 1 24 4 8 2 19 65 0 94 11:00 11 0 2 13 23 1 24 4 12 1 21 71 1 106 12:00 20 0 2 22 24 0 24 4 13 2 41 68 0 124 13:00 16 1 3 20 25 0 25 6 14 2 43 59 0 118 14:00 17 1 3 21 25 0 25 6 14 1 33 59 1 108 15:00 14 0 2 16 16 0 16 4 9 1 23 50 0 83 16:00 15 2 2 19 9 0 9 3 6 0 23 32 0 61 17:00 5 0 2 7 3 0 3 3 3 2 28 19 0 52 18:00 1 0 0 1 1 0 1 2 2 2 23 15 1 43 19:00 2 0 0 2 1 0 1 0 5 1 25 11 0 42 20:00 0 0 0 0 1 0 1 0 0 1 19 12 0 32 TIME TIME LOT 76LOT 75LOT 74LOT 73 LOT 81LOT 79LOT 78 LOT 77 Page 595 of 1128 Project #:15-6102 Day Wednesday City:Palm Desert Date:7/1/2015 001S 002N 002S 003S 007 Regular Green Regular Regular Regular Regular Regular Regular 2 Hour Regular Regular Regular Regular 2 Hour 7am-6pm Regular Regular Spaces 26 0 27 34 48 15 1 22 23 3 2 44 2 8 1 59 1 62 2 1 46 52 3 6:00 3 0 3 4 8 0 0 0 0 0 0 2 0 0 0 1 0 0 0 0 0 6 0 7:00 4 0 5 5 9 0 0 2 0 0 0 2 0 0 0 2 0 5 0 0 2 13 0 8:00 7 0 11 6 10 1 0 3 0 0 0 4 0 0 0 6 0 5 0 0 7 10 0 9:00 4 0 13 13 15 3 0 7 0 0 0 8 0 0 0 15 0 8 0 0 10 30 0 10:00 8 0 13 13 21 7 1 13 0 0 0 8 0 0 1 18 0 8 0 0 16 26 0 11:00 6 0 12 22 21 9 1 12 3 0 0 11 0 3 1 24 0 14 0 0 12 29 0 12:00 5 0 13 17 25 3 1 12 5 0 0 11 0 3 1 26 0 14 0 0 17 43 0 13:00 12 0 13 13 20 6 1 13 3 0 0 14 0 7 0 20 0 19 0 0 15 34 0 14:00 7 0 13 14 20 8 1 19 5 0 0 14 0 4 0 27 0 16 0 0 14 22 1 15:00 9 0 12 17 14 8 1 14 2 0 0 15 0 3 0 23 0 18 0 0 14 17 0 16:00 8 0 15 13 15 6 1 13 2 0 0 13 0 3 0 20 0 14 0 0 13 17 0 17:00 7 0 13 13 8 2 1 5 1 0 0 8 0 1 0 8 0 10 0 0 7 16 0 18:00 12 0 12 12 8 1 0 6 4 0 0 5 0 0 0 6 0 9 0 0 2 9 0 19:00 14 0 10 10 8 0 0 3 7 0 0 9 0 0 0 3 0 7 0 0 1 12 0 20:00 13 0 8 7 5 0 0 0 6 0 0 11 0 0 0 3 0 6 0 0 1 12 0 012E 012W 013E 014W 015 16 Regular Regular Regular Regular Regular Regular Regular Regular Regular Green Regular Yellow Regular Regular Regular Spaces 41 2 8 2 66 3 38 4 33 1 11 11 15 8 1 6 2 10 6 28 6:00 3 0 2 0 8 0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 7:00 1 0 4 0 10 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 8:00 5 0 7 0 12 0 1 0 0 0 0 1 0 0 0 1 0 0 0 0 9:00 10 0 7 0 35 0 7 0 4 0 0 2 0 0 0 2 0 3 0 2 10:00 16 0 9 0 23 0 11 0 3 0 3 4 0 1 0 0 0 6 0 9 11:00 16 0 8 1 24 0 18 0 4 0 5 4 1 2 0 1 0 9 0 12 12:00 15 0 7 1 16 0 18 0 6 0 4 4 0 2 0 2 0 6 2 17 13:00 19 0 6 0 23 0 22 0 6 0 4 4 1 1 0 2 0 6 3 16 14:00 6 0 7 0 16 0 28 0 4 0 5 5 1 1 0 2 0 6 3 13 15:00 17 0 8 0 12 0 25 1 4 0 5 5 1 1 0 0 0 4 2 11 16:00 14 0 3 1 21 0 14 0 4 0 3 4 0 2 0 0 0 3 1 6 17:00 30 0 7 0 13 0 16 0 3 0 4 2 0 2 0 2 0 5 3 6 18:00 28 0 6 0 15 0 11 0 3 0 3 2 0 2 0 3 0 4 5 6 19:00 25 0 4 0 11 0 8 0 0 0 2 0 0 3 0 1 0 1 5 5 20:00 23 0 5 0 5 0 4 0 0 0 2 2 0 2 0 2 0 1 5 3 017 018 022 023 024 025 026 027 028 029 030 031 032 033 Regular Regular Regular 20 Minutes Green Regular 20 Minutes Green Regular Yellow Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Regular Spaces 24 11 25 1 26 2 35 2 18 4 26 22 16 24 24 17 2 10 4 2 6:00 0 2 3 0 0 1 0 0 0 0 0 0 2 2 0 0 0 0 0 0 7:00 0 3 3 0 1 1 1 0 0 0 0 0 5 3 1 0 1 0 0 0 8:00 0 2 5 0 0 1 2 0 0 0 1 0 2 7 0 1 0 1 0 0 9:00 1 1 14 0 1 0 9 0 2 0 1 0 4 8 3 1 0 5 0 0 10:00 10 8 20 0 7 0 13 0 3 1 3 2 8 11 7 2 0 5 0 0 11:00 11 6 13 1 8 0 18 0 6 2 12 1 15 22 13 1 0 5 1 0 12:00 17 8 18 0 20 1 16 0 0 4 10 2 14 22 17 3 0 4 0 0 13:00 16 7 22 0 21 0 9 0 3 4 7 5 12 20 14 2 0 1 2 0 14:00 14 7 18 0 15 0 14 0 0 3 8 4 13 21 10 2 0 5 0 0 15:00 7 8 15 0 10 0 12 0 2 2 7 4 14 20 9 1 1 4 0 0 16:00 9 4 10 0 9 0 12 0 3 3 6 7 12 19 14 3 1 5 1 0 17:00 13 5 11 0 16 1 14 0 1 4 7 3 11 26 25 2 2 5 1 0 18:00 13 8 12 0 26 0 9 0 1 4 6 7 12 21 21 2 2 1 0 0 19:00 14 3 13 0 27 0 6 0 0 3 10 4 10 16 22 2 2 0 0 0 20:00 11 0 10 0 22 0 2 0 0 2 8 7 8 12 21 1 2 0 0 0 TIME Prepared by National Data & Surveying Services STREET PARKING STUDY 008006001N003N 014E 004N 004S 005N 005S 012 019 020 021TIME 013WTIME009N009S010011 Page 596 of 1128 APPENDIX B: SUBAREA LAND USE Page 597 of 1128 Page 598 of 1128 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 15, 2024 PREPARED BY: Veronica Chavez, Director of Finance REQUEST: RECEIVE AND FILE REPORT RELATED TO TRANSIENT OCCUPANCY TAX COMPLIANCE PROGRAM PERFORMED ON COLLECTIONS RECEIVED DURING FISCAL YEARS 2018-2019 THROUGH 2020-2021 AND WAIVE CERTAIN FINDINGS RECOMMENDATION: 1. Receive and file report related to Transient Occupancy Tax (TOT) Compliance Program for collections during Fiscal Years 2018-2019 through 2020-2021. 2. Authorize Director of Finance to waive collection of findings related to attrition and cancellation charges and issue a one-time Notice of Forgiveness. 3. Authorize Director of Finance to collect all other find ings and authorize payment to Avenu for completion of Compliance Review Final Report. BACKGROUND/ANALYSIS: In September 2022, City staff engaged Avenu Insights and Analytics (Avenu) to conduct a TOT compliance program on the major hotels within Palm Desert. Avenu is a trusted vendor that provides various municipal consulting services and has conducted our Sales Tax analysis and compliance reviews for many years. The hotels were notified of the review and asked to provide documentation to substantiate T OT amounts remitted to the City from the period of January 2019 through December 2021. Of the 13 hotels selected, 5 hotels were found to have no deficiencies during the period of time under review. The remaining 8 hotels were found to have been underrepo rted in one area or another in a total amount of $225,092.07 in under-reported tax. Name Finding Attrition Fees Cancelation Fees Other Guest Charges Accounting Errors Over Deduction Total 11% Tax Due Mgmt Agrees Best Western Plus P.D. Resort Commendation N/A Courtyard by Marriott Deficiency 57,329.06$ 57,329.06$ 6,306.20$ NO Fairfield Inn & Suites Deficiency 75,008.95$ 75,008.95$ 8,250.98$ NO Hampton Inn & Suites Deficiency 76,498.68$ 76,498.68$ 8,414.85$ YES Holiday Inn Express & Suites Deficiency 4,183.53$ 4,183.53$ 460.19$ YES Homewood Suites by Hilton Deficiency 12,560.05$ 12,560.05$ 1,381.61$ NO Hotel Paseo Autograph Collection Deficiency 184,190.43$ 184,190.43$ 20,260.95$ YES JW Marriott Desert Springs Resort Deficiency 537,318.67$ 913,121.52$ 1,450,440.19$ 159,548.42$ NO Marriott's Desert Springs Villas Commendation -$ -$ N/A Marriott's Shadow Ridge Commendation -$ -$ N/A Residence Inn by Marriott Deficiency 38,273.00$ 144,391.63$ 3,416.00$ 186,080.63$ 20,468.87$ YES Springhill Suites by Marriott Commendation -$ -$ N/A The Westin Desert Willow Villas Commendation -$ -$ N/A 575,591.67$ 925,681.57$ 264,872.64$ 276,729.64$ 3,416.00$ 2,046,291.52$ 225,092.07$ Under-Reported TOT Page 599 of 1128 City of Palm Desert Receive and File TOT Compliance Report Page 2 of 2 The City’s TOT Ordinance requires that collections be made on attrition fees, cancellation fees, and extra guest charges. JW Marriott Desert Springs Resort has submitted a dispute relative to collection made on attrition and/or cancellation fees. Following discussion on the dispute issue with legal counsel, staff believes the best course of action, given the interpretation ambiguity asserted in the ordinance, is to provide a one-time waiver of findings related to attrition/cancellation fees and work with legal counsel to further clarify those areas of the code. If council agrees with staff’s recommendation, collections will be pursued on the remaining findings of under-reported TOT: HOTEL UNPAID TAX Courtyard by Marriott $6,306,20 Fairfield Inn & Suites $8,250.98 Hampton Inn & Suites $8,414.85 Holiday Inn Express & Suites $460.19 Hotel Paseo Autograph Collection $20,260.95 Residence Inn* $16,258.84 TOTAL $59,952.01 *$4,210.03 is related attrition/cancellation fees. Staff further wants to recognize the five hotels who received commendation from the compliance review. Those hotels are as follows: Best Western Plus Palm Desert Resort Marriott’s Desert Springs Villas Marriott’ Shadow Ridge Springhill Suites by Marriott The Westin Desert Willow Villas The agreement with Avenu is based on the value of their findings. Therefore, Avenu having completed their compliance review report would be entitled to a 30% contingency fee based on the total amount identified as underreported and recovered by the City, for a total of $67,527.62. Staff recommends Avenu be paid in full for the work provided in full compliance, including those which may receive a one-time waiver. Legal Review: This report has been reviewed by the City Attorney’s office. FINANCIAL IMPACT: The impact to the General Fund includes collection of $59,952.01 in underreported TOT, a one - time waiver of payment in the amount of $165,140.06, plus the amount due to Avenu based on their findings in the amount of $67,527.62. ATTACHMENT: TOT Compliance Review Final Report Page 600 of 1128 Page 601 of 1128 Page 602 of 1128 Page 603 of 1128 Page 604 of 1128 Page 605 of 1128 Page 606 of 1128 Page 607 of 1128 Page 608 of 1128 Page 609 of 1128 Page 610 of 1128 Page 611 of 1128 Page 612 of 1128 CITY OF PALM DESERT CITY MANAGER’S OFFICE INTEROFFICE MEMORANDUM Date: February 15, 2024 To: Honorable Mayor and Councilmembers From: Anthony J. Mejia, City Clerk Subject: City Council Meeting of February 15, 2024 Below you will find questions received from the Mayor or Councilmembers and answers provided by City staff regarding tonight’s City Council meeting: ITEM 13h: APPROVE AGREEMENT WITH FLOCK SAFETY FOR AUTOMATED LICENSE PLATE RECOGNITION SOFTWARE SUBSCRIPTION FOR A TERM OF FIVE YEARS Q1: Is there an update on the economic impact, such as property recovery? A1: The ALPR software and CAD system are not designed to capture this information. This requires manual interpretation of reports to extract the data, which requires a significant number of staff hours from the Sheriff's department and will need time to compile this information to provide specifics. The current reporting has been the cumulative number of arrests and property recovered, which for ALPR Assisted Investigations are total arrests: 65, total amount recovered: $437,200. Q2: Any updates on the narcotics and weapons intercepted? A2: The narcotic and weapons recovery are to highlight significant incidents which is provided by the Public Safety Committee, and in the Palm Desert Significant Incident Reports. For example: On December 8, 2023, at 5:15 p.m., deputies received a flock notification of a stolen motorcycle on Monterey Avenue. The deputies located the motorcycle at The Shops on El Paseo. After a short foot pursuit, a male from Yucaipa was arrested for possession of a stolen motorcycle, a stolen handgun, and 13 grams of methamphetamine. Q3: Will Palm Desert continue to opt out of external agencies, so that only those with warrants can access? A3: The City has complied with state law since inception of the roll out of the program. Palm Desert data is only shared with California agencies as permitted by state law. Any outside-of-the-state requests will be sent in writing and reviewed by the Sheriff's Department. Authorization will be provided for that specific case and have a limited amount of time to access the data. Q4: Will we ensure that we maintain ownership of all data and opt into the transparency dashboard portal? A4: The City will continue to maintain ownership of all data. This agreement continues those requirements. Additionally, the City publishes the transparency portal data monthly via the Weekly Administrative Report and at the Public Safety Committee Meetings. The data is verified by city staff to ensure compliance with state law. Supplemental Q&A Memo-1 Page 613 of 1128 02/15/2024 Question & Answer Memo Page 2 of 2 ITEM 13q: RECEIVE AND FILE REPORT RELATED TO TRANSIENT OCCUPANCY TAX COMPLIANCE PROGRAM PERFORMED ON COLLECTIONS RECEIVED DURING FISCAL YEARS 2018-2019 THROUGH 2020-2021 AND WAIVE CERTAIN FINDINGS Q1: Is 30% a normal rate established for contingency fees? A1: Yes. For compliance programs we typically see anywhere from 30-35% as their rate in proposals. ITEM 13v: RATIFY A LETTER TO THE CALIFORNIA LEGISLATURE URGING THE PROTECTION OF DEDICATED REGIONAL EARLY ACTION PLANNING GRANTS PROGRAM FUNDING Due to recent changes in the Legislature’s leadership, the subject letter has been updated to reflect the current officeholders. There are no changes to the content of the letter. Supplemental Q&A Memo-2 Page 614 of 1128 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: January 25, 2024 PREPARED BY: Anthony J. Mejia, City Clerk REQUEST: PALM DESERT REDISTRICTING 2023: PUBLIC EDUCATION AND OUTREACH PLAN SUMMARY REPORT – REPORT ON THE BASIS ON WHICH THE CITY COUNCIL MADE ITS DECISIONS IN ACHIEVING COMPLIANCE WITH REDISTRICTING REQUIREMENTS AND CRITERIA [ELECTIONS CODE 21130(F)] RECOMMENDATION: 1. Receive and file the Redistricting Public Education and Outreach Summary Report. 2. Pursuant to Elections Code 21130(f), approve the report which explains the basis on which the City Council made its decisions in achieving compliance with the redistricting requirements and criteria. BACKGROUND/ANALYSIS: On June 22, 2023, the City Council unanimously directed staff to take the necessary steps to transition to five single-member districts prior to the November 2024 Election and to eliminate use of Ranked Choice Voting (RCV) in future elections. On August 24, 2023, the City Council adopted the Redistricting Public Education and Outreach Plan. The Public Education and Outreach Summary Report (Attachment 1) details the efforts to inform the community about the redistricting process along with performance metrics. Pursuant to Elections Code 21130(f), “the districting body shall issue a report that explains the basis on which the districting body made its decisions in achieving compliance with the [redistricting] requirements and criteria.” The City’s Demographer has prepared the draft report (Attachment 2) based on the comments offered by members of the City Council for selecting “Map 109 Renumbered B.” Legal Review: This report has been reviewed by William Priest and the City Attorney’s Office. Page 615 of 1128 City of Palm Desert Palm Desert Redistricting 2023: Summary Reports Page 2 of 2 FINANCIAL IMPACT: As noted in the Public Education and Outreach Plan, the City allocated $155,000 in financial resources towards the redistricting effort as follows: Provider Service Amount National Demographics Corp. Demographer Services $60,000 Tripepi Smith Outreach & Engagement Services $60,000 ($40,000 for consulting & $20,000 advertising) Professional Interpreting On-Call Spanish Translation and Interpreter Services $5,000 CASL Interpreting On-Call American Sign Language Interpreter Services $5,000 Printing & Mailing Company Citywide Mailer $25,000 Total $155,000 Below are the actuals for the services noted above: Provider Service Amount National Demographics Corp. Demographer Services $43,500 Tripepi Smith Outreach & Engagement Services $28,662 Google Ads Advertising $ 5,550 Facebook Ads Advertising $ 4,374 Spotify Ads Advertising $ 519 Pandora Ads Advertising $ 858 Radio Ads Advertising $ 7,863 Collateral Materials Printed Map Posters $ 158 Best, Best, & Krieger Legal Services $ 8,481 Professional Interpreting On-Call Spanish Translation and Interpreter Services $ 3,320 CASL Interpreting On-Call American Sign Language Interpreter Services $ 1,120 Xpress Graphics Citywide Mailer/Advertising $13,840 Total $118,245 ATTACHMENTS: 1. Public Education & Outreach Summary Report 2. Elections Code 21130(f) Report Page 616 of 1128 1 Redistricting Public Education and Outreach Summary Report January 25, 2024 Page 617 of 1128 2 Table of Contents Table of Contents 2 Introduction 3 Building An Outreach Team 3 Spanning Channels of Outreach 3 Public Engagement and Outreach Plan 4 Dedicated Redistricting Website 4 Collateral Materials 7 Social Media 7 Flyer 7 Mailer 8 Press Releases 9 Paid Advertising 9 Radio Ads 9 English Radio Ads 10 Mix 100.5, 10 K-NEWS 104.7 10 Spanish Radio Ads 10 La Poderosa - 96.7 10 La Suavecita - 107.1 10 Google Ads 10 Search Ads 10 Display Ads 12 Meta Ads 13 English Ads 13 Spanish Ads 13 Spotify 14 Pandora 14 Media Mentions 14 Outreach to Community-Based Organizations and Partner Agencies 16 Direct Outreach 16 Community Workshops 16 Page 618 of 1128 3 Introduction The City of Palm Desert launched a robust outreach effort to reach across the community to engage and educate the public about the redistricting process. This Outreach Summary Report aims to provide a high-level overview of the outreach philosophy, process, and results to date. Building An Outreach Team Palm Desert built a team of professionals to effectively execute the community outreach component of the project. This team includes Palm Desert staff, Tripepi Smith and National Demographics Corporation (NDC). These parties have been meeting jointly on regular calls to discuss the project and coordinate efforts. Integrating the demographer (NDC) into the outreach plan was designed to ensure that communications properly contributed to the broader goals of public information and drawing maps. This team approach has helped to eliminate silos of knowledge in this critical project. Tripepi Smith was engaged as an outreach expert on the redistricting process. The firm has a history of collaboration with NDC and has worked with other agencies to assist with their redistricting efforts. These outreach efforts were completed in close coordination with Palm Desert staff members. Spanning Channels of Outreach Palm Desert leveraged an array of outreach platforms to connect with the public. These included: ● The City’s dedicated redistricting website - RedistrictPD.org ● The City’s social media channels, including Facebook, and X (formerly Twitter) ● Direct outreach to community groups ● Print and web flyer ● Mailer ● Digital and radio advertising ● Press releases/media outreach ● Community meetings throughout the City and via Zoom Page 619 of 1128 4 Key highlights of outreach efforts to date include: ● Public Engagement and Outreach Plan, adhering to Assembly Bill 764 requirements. ● Rollout of the redistricting webpage, RedistrictPD.org, where extensive resources are available for the public to learn about the redistricting process, access all the materials and meeting information, and to draw maps based upon their understanding of communities of interest and submit them for consideration. ● 17 social media posts spread across Facebook and X. ● One informational flyer sharing background redistricting information and encouraging resident involvement. ● One bilingual (English and Spanish) mailer explaining redistricting and encouraging participation, which was sent to every resident in Palm Desert. ● News releases distributed to the City’s media contacts and published on the City’s redistricting website. ● Paid advertisement on several English and Spanish radio stations. ● Paid advertisement on Meta to promote engagement in English and Spanish. ● Direct contact with approximately 14 community-based organizations to drive awareness of the District’s redistricting process and promote opportunities to participate in community meetings. ● Three community workshops to go over the redistricting process and gather public input on neighborhoods and communities of interest. Two map drawing workshops to demonstrate the use of mapping tools. Public Engagement and Outreach Plan The City of Palm Desert's staff produced a Public Engagement and Outreach Plan, adhering to Assembly Bill 764 requirements. This report aims to cover Election Code 21160 provisions, providing a comprehensive overview of the process and its procedural details and was referenced throughout the corresponding process. Dedicated Redistricting Website RedistrictPD.org went live on August 24, 2023. The website serves as a one-stop location for the public to learn about the redistricting process and is also available in additional languages through the Google Translate plugin. The website was updated regularly to include the most accurate information about the process. From August 24, 2023, to January 8, 2024, there have been 8,191 Sessions on the City’s redistricting website. A Session is the period of time a user is actively engaged with the website. Throughout the process, the website’s Sessions came from 5,915 users who viewed 11,448 pages. Page 620 of 1128 5 User Activity has been fairly consistent throughout the process, with peaks around workshop and public hearing dates. Activity dropped off in January 2024, likely due to fewer updates being shared as the process comes to a close. The homepage of the website had the most hits with 8,304 views, and the Schedule and Draw a Map pages followed with 1,001 and 884 views, respectively. This shows interest from the public in attending workshops and public hearings and drawing maps for consideration. Users also tended to visit the Draft Maps page multiple times, about 3, showing that residents are interested in reviewing the draft maps and staying up to date throughout the process. Page 621 of 1128 6 3,106 users came to the website directly via the RedistrictPD.org URL which could be found on all materials and media produced by the City. The website gained 1,387 new users through the search ads being run on Google (Paid Search) and 952 new users from social media posts shared by the City (Organic Social). The City’s districting website is also mobile optimized, creating a positive experience for users on any device, especially the 79% of users who used mobile devices to access the website. Palm Desert’s website successfully served as the main location for users from a variety of sources to find more information about the redistricting process and get involved. Page 622 of 1128 7 Collateral Materials Social Media The City of Palm Desert scheduled 17 total posts across Facebook and X. Each social media post included a descriptive English caption and an invitation to visit the redistricting webpage. Some posts were also shared in Spanish. (Note that a Facebook user can choose to see all post verbiage in Spanish or another language of their choice, depending on their personal Language Settings.) Social media content included: ● Announcements about community meetings, map drawing workshops and public hearings. Flyer Palm Desert produced one flyer promoting resident involvement in the redistricting process and general districting information. The flyer was also translated into Spanish. The flyer was shared and distributed at community group presentations, including the community workshops and map-drawing workshops. Page 623 of 1128 8 Mailer The City also produced a mailer in English and Spanish to briefly explain the redistricting process and encourage resident participation. The mailer was sent to each residence and business in the City in addition to registered voters who do not live within city limits. Page 624 of 1128 9 Press Releases Throughout the process, the City of Palm Desert has pushed out one press release to more than 45 local and regional media contacts to introduce the redistricting process. To increase coverage, the City also utilized X to broaden exposure for the release. The City plans to push out a final press release informing residents of the adopted map and election sequence. Paid Advertising The City of Palm Desert expanded outreach efforts to include paid advertising and increase the overall reach of the redistricting efforts. Advertising platforms included radio ads, Google Ads, Meta Facebook ads, Spotify and Pandora. An initial round of advertising ran from September to November 2023. A second round ran from September 2023 to January 2024. Each round notified residents of the redistricting process and encouraged participation. Radio Ads The City ran radio ads on English and Spanish channels including Mix 100.5, K-NEWS 104.7, La Poderosa 96.7 and La Suavecita 94.7 for 10 weeks. More information for these is highlighted below: Page 625 of 1128 10 English Radio Ads Mix 100.5, ● Spot Placements: 112 ● Estimated Net Reach: 25,300 ● Estimated Impressions: +238,800 K-NEWS 104.7 ● Spot Placements: 32 ● Estimated Net Reach: 9,500 ● Estimated Impressions: +238,800 Spanish Radio Ads La Poderosa - 96.7 ● Spot Placements: 95 ● Estimated Net Reach: 40,800 La Suavecita - 107.1 ● Spot Placements: 76 Google Ads Search Ads Google Search Ads appear on the Google search engine results page when users conduct relevant searches using specific keywords or phrases. The City ran Google Search Ads in English and Spanish. The keywords employed for the City's Google Search Ads, active from September 2023 to January 2024, underwent continuous modifications for optimization. To broaden impact, English Search Ads were optimized to translate keywords into Spanish based on users’ language settings. Keywords included but were not limited to: ● A City Map ● All District Map ● Boundary Map ● Boundary Search ● City Council Elections ● City Council Redistricting ● City of Palm Desert ● Community District Map ● Council Boundary Map ● Council Maps ● Dave’s Redistricting ● District Boundaries ● District Election Maps ● District Location ● District Map ● Downtown Palm Desert ● Draft Map ● Gerrymandering Map ● New Districts ● New District Map Page 626 of 1128 11 ● New Redistricting Map ● Palm City Map ● Palm Desert City Hall ● Palm Desert Districts ● Palm Desert Map ● Palm Desert Shopping Center ● Palm Desert Town Center ● Palm Desert Zoning Map ● Palm Map ● Redistricting Criteria ● Redistricting Map ● Redistricting Maps ● Redistricting Meaning ● Redistricting Process ● Redistricting Tool ● Riverside County Districts ● Riverside County Redistricting ● Zoning District By Address ● 2022 Redistricting Spanish Search Ad keywords included but were not limited to the following: ● Ayuntamiento de Palm Desert ● Centro Commerical de Palm Desert ● Centro de Palm Desert ● Centro Urbano de Palm Desert ● Ciudad de Palm Desert ● Criterios de Redistribución de Distritos ● Distritos de Palm Desert ● Mapa de Distritos ● Mapa de distritos del comunitario ● Mapa de la Ciudad ● Mapa de Palm ● Mapa de Palm Desert ● Mapa de todos los Distritos ● Mapa de Zonificación de Palm Desert ● Mapa Nueva de Redistribución de distritos ● Municipalidad de Palm Desert ● Nueva Mapa de Redistribución de distritos ● Palm Desert ● Redistribución de Distritos del Concejo Municipal ● Redistribución de distritos de 2022 ● Significado de redistribución de distritos Overall, the English Search ad garnered the following results: ● 1Impressions – 17,065 ● Clicks – 1,067 The Spanish Seach ad garnered: ● Impressions: 6,455 ● Clicks – 156 1 Impression: Each time an ad is shown on a search result page or other site on the Google Network. Page 627 of 1128 12 Google Search Ad Examples: Display Ads The City of Palm Desert implemented Google Display Ads in both English and Spanish to enhance the diversity of Google Advertising. These visually captivating ads, featured on the Google Display Network, aimed to disseminate information on third-party websites. The Google Display Ads campaign spanned from October to January, and key performance metrics are outlined below: English Display Ads: ● Impressions: 170,651 ● Clicks: 350 Spanish Display Ads: ● Impressions: 104,807 ● Clicks: 163 Google Display Ad Examples: Page 628 of 1128 13 Meta Ads The City of Palm Desert ran ads on Meta to further boost awareness of the districting effort via social media. These ads included graphics and copies encouraging residents to learn more about the district formation process and participate in the process. Two ads ran in English and Spanish between September 2023 and January 2024, with links routing viewers to RedistrictPD.org. The ads had a combined reach of over 72,000 and 4,517 link clicks. Detailed metrics for each ad are listed below. English Ads September 19 - November 1, 2023: ● 2Reach: 15,894 ● Link Clicks: 548 November 3, 2023 - January 11, 2024: ● Reach: 21,357 ● Link Clicks: 2,289 Spanish Ads September 19 - November 1, 2023: ● Reach: 20,199 ● Link Clicks: 427 November 3, 2023 - January 11, 2024: ● Reach: 14,943 ● Link Clicks: 1,253 2 Reach: the number of accounts that saw the ads at least once. Page 629 of 1128 14 Spotify Music streaming services, like Spotify and Pandora, offer a unique opportunity to reach viewers who are actively engaged with the content and more likely to pay attention to ads. The City of Palm Desert created two 30-second audio advertisements to stream on Spotify between September 2023 and January 2024. The advertisements were specifically targeted to Palm Desert zip codes and were shared with users over the age of 18. The first ad ran in English and garnered 35,252 impressions, reached 4,877 users and had 53 clicks. Ad completion rate is the percentage of users who listen through the full advertisement. Palm Desert’s first ad had a 95% ad completion rate. The City ran a second audio advertisement in English and Spanish after the map drawing deadline. The English advertisement had 44,638 impressions, reached 6,655 users, had 50 clicks and had a 95% ad completion rate. The Spanish advertisement had 6,611 impressions, reached 916 users, had 3 clicks and had a 98% ad completion rate. Pandora In tandem with the Spotify audio advertisement, the City of Palm Desert ran ads on Pandora, targeting users in Palm Desert over the age of 18. The first ad ran in English and garnered 13,975 impressions and reached 4,872 users. Listen-through rate is the percentage of users who listen to the full advertisement. Palm Desert’s ad had a 98% listen-through rate. The second round of advertising ran in English and Spanish. The English ad had 13,915 impressions, reached 7,916 users and had a listen-through rate of 96%. The Spanish ad had 13,915 impressions, reached 4,771 users and had a listen-through rate of 97%. Media Mentions Several media outlets followed the redistricting process and shared updates with residents throughout. These publications complemented the City’s outreach efforts and expanded the overall reach. Media outlets and their publications are listed below. Page 630 of 1128 15 Coachella Valley Independent: ● Five Districts Confirmed: After Years of Obfuscation and Controversy, the Palm Desert City Council Agrees to Move Away From its Odd Two-District System ● Protecting the Incumbents? Despite Opposition, the Palm Desert City Council Votes to Advance Only One Redistricting Map and Election Schedule Desert Sun: ● Palm Desert Council Agrees to Switch to Five Voting Districts Ahead of 2024 Election ● Palm Desert Council’s Favored District Map Draws Criticism for Splitting City’s North End ● Stay on Course, Palm Desert City Council, in Getting Redistricting Done ● Palm Desert Council Reaffirms Support for Map Splitting City’s North End Despite Pushback ● Desert Sun’s Editorial Stance on Palm Desert Redistricting is on Point. Keep the Forward Movement ● Palm Desert Council OKs Final Redistricting Map for Transition From Two to Five Districts KESQ: ● Palm Desert City Council to Discuss Redistricting Options ● Palm Desert City Leaders Vote to Transition to 5 Districts, Meeting Voter Demands ● City of Palm Desert Inviting Residents to Weigh in on Redistricting ● Proposed District Map Remains Center of Controversy in Palm Desert Redistricting Process ● Palm Desert Moves Forward with Proposed District Map Amid Objections from Northside Residents ● Palm Desert City Council Approves Final Redistricting Map K-News Radio: ● Palm Desert Finalizing 5 Voting Districts in Town NBC Palm Springs ● Public Invited to Workshop About Redistricting Process in Palm Desert Public CEO ● City of Palm Desert Begins Redistricting Process Uken Report ● Palm Desert Redistricting 2023 ● Democrats to Meet on Palm Desert Redistricting ● Five Districts for Palm Desert [Opinion] Page 631 of 1128 16 Outreach to Community-Based Organizations and Partner Agencies Direct Outreach Tripepi Smith, on behalf of Palm Desert, contacted four community-based organizations via email. Each organization was encouraged to get involved in the process and to share information about the redistricting process with their constituents. The following organizations were contacted: 1. Desert Valley Builders Association 2. League of Women Voters - Riverside 3. Palm Desert Area Chamber of Commerce 4. Rotary Club of Palm Desert Additional direct outreach was conducted by City staff to: 1. Palm Desert Chamber of Commerce 2. Palm Desert Greens Democrats & Republican Clubs 3. Portola Country Club 4. Rotary Club of Palm Desert 5. Soroptimist International of Palm Desert Other direct outreach by the City included sharing the outreach plan with ACLU and Common Cause, holding an individual map drawing class for a resident, and participating in an interview about the redistricting process with KESQ. Community Workshops Palm Desert held its first districting Community Workshop and two Map Drawing Workshops to engage the public, seek input on communities of interest and assist with map drawing. ● September 6, 2023 – Virtual, via Zoom ● October 4, 2023 – Virtual, via Zoom ● October 16, 2023 – Virtual, via Zoom The City held a second round of two Community Workshops to encourage residents to provide feedback on draft maps and share map elements they agree or disagree with. ● November 29, 2023 – Palm Desert iHub ● December 6, 2023 – Hybrid, via Zoom and Palm Desert Civic Center During all workshops, Spanish and ASL Interpreters were on-site and available. Recordings of each community workshop were posted to the redistricting webpage following each meeting to be used as a public resource. Page 632 of 1128 1 CITY OF PALM DESERT 2023 ADOPTED CITY COUNCIL ELECTION DISTRICT BOUNDARIES REPORT PURSUANT TO ELECTION CODE 21130(f) On January 25, 2024, the Palm Desert City Council unanimously adopted “Map 109 Renumbered B” as the official district boundaries for City Council. Elections for Districts 1, 2, and 3 will be held in November 2024, with Districts 4 and 5 following in December 2026 to complete the transition to five single-member districts. As required by Election Code 21130(f), the following report explains the basis on which the districting body made its decisions in achieving compliance with the requirements and criteria described in Section 21130: Election Code 21130(a) states: (a) Following or concurrent with the decision to establish district-based elections for a legislative body, or following each federal decennial census for a legislative body that is already elected using district-based elections, the districting body shall, by ordinance or resolution, adopt boundaries for all of the election districts of the legislative body so that the election districts shall be substantially equal in population as required by the United States Constitution. (1) Population equality shall be based on the total population of residents of the local jurisdiction as determined by the most recent federal decennial census for which the redistricting data described in Public Law 94-171 are available. (2) Notwithstanding paragraph (1), an incarcerated person, as that term is used in Section 21003, shall not be counted towards a local jurisdiction’s population, except for an incarcerated person whose last known place of residence may be assigned to a census block in the local jurisdiction, if information about the last known place of residence for incarcerated persons is included in the computerized database for redistricting that is developed in accordance with subdivision (b) of Section 8253 of the Government Code, and that database is made publicly available. On January 25, 2024, the City Council adopted its Ordinance No. 1406 adopting election district boundaries substantially equal in population balance as required by the United States Constitution and in accordance with Election Code 21330(a)(1) and (2). Under federal law, districts are presumed constitutional if the difference between the deviation from the ideal population of the largest and smallest districts is less than ten percent. In the City’s adopted map, District 4 is the largest district at 10,659 people and a deviation from the ideal population of +3.86 percent. District 1 is the smallest district at 9,777 people and a deviation from the ideal of -4.74 percent. The difference between those two percentages is 8.59 percent, safely below ten percent. Election Code 21130(b) states: (b) The districting body shall adopt election district boundaries that comply with the United States Constitution, the California Constitution, and the federal Voting Rights Act of 1965 (52 U.S.C. Sec. 10301 et seq.). (1) Consistent with the districting body’s existing obligations under the federal Voting Rights Act, the districting body shall determine whether it is possible to create an Page 633 of 1128 2 election district or districts in which a minority group is sufficiently large and geographically compact to constitute a majority in a single -member district, as set forth in Thornburg v. Gingles, 478 U.S. 30 (1986), and as interpreted in case law regarding enforcement of the federal Voting Rights Act with respect to redistricting. The districting body shall publish on its redistricting web page, at a minimum, the results of its analysis within seven days of completing the analysis or prior to adopting election district boundaries, whichever occurs first. (2) If the districting body, consistent with its existing obligations under the federal Voting Rights Act, conducts an analysis to determine whether “racially polarized voting,” as defined in case law regarding enforcement of the federal Voting Rights Act, exists in the local jurisdiction, the districting body shall publish on its redistricting web page, at a minimum, a summary of its analysis and findings within seven days of completing the analysis or prior to adopting election district boundaries, whiche ver occurs first. In accordance with Election Code 21330(b)(1) and consistent with the districting body’s existing obligations under the federal Voting Rights Act, the City Council has determined that it is not possible to create an election district or districts in which a minority group is sufficiently large and geographically compact to constitute a majority in a single-member district, as set forth in Thornburg v. Gingles, 478 U.S. 30 (1986), and as interpreted in case law regarding enforcement of the federal Voting Rights Act with respect to redistricting. In the City’s previous districting and redistricting processes, Council District 1 was drawn to elect, and succeeded in electing, a candidate anecdotally known to be preferred by protected class voters, even though no single protected class constitutes a majority of the Citizen Voting Age Population in the district. The current redistricting leaves Council District 1 in place unchanged. The result of this analysis was published on the City’s redistricting web page prior to adopting election district boundaries. The City did not conduct a racially polarized voting analysis as described in Election Code 21130(c)(2). Election Code 21130(c) through (e) states: (c) The districting body shall adopt election district boundaries using the following criteria as set forth in the following order of priority: (1) To the maximum extent practicable, election districts shall be geographically contiguous. Areas that meet only at the points of adjoining corners are not contiguous. Areas that are separated by water and not connected by a bridge, tunnel, or regular ferry service are not contiguous. (2) To the maximum extent practicable, and where it does not conflict with the preceding criterion in this subdivision, the geographic integrity of any local neighborhood or local community of interest shall be respected in a manner that minimizes its division. A “community of interest” is a population that shares common social or economic interests that should be included within a single election district for purposes of its effective and fair representation. Characteristics of communities of interest may include, but are not limited to, shared public policy concerns such as education, public safety, public health, environment, housing, transportation, and access to social services. Characteristics of communities of interest may also include, but are not limited to, cultural districts, shared socioeconomic characteristics, similar voter registration rates and participation rates, and shared histories. Communities of Page 634 of 1128 3 interest do not include relationships with political parties, incumbents, or political candidates. (3) To the maximum extent practicable, and where it does not conflict with the preceding criteria in this subdivision, the geographic integrity of a city or census designated place shall be respected in a manner that minimizes its division. This paragraph does not apply to a city. (4) To the maximum extent practicable, and where it does not conflict with the preceding criteria in this subdivision, election districts shall be bounded by natural and artificial barriers, by streets, or by the boundaries of the local jurisdiction. Election district boundaries should be easily identifiable and understandable by residents. (5) To the maximum extent practicable, and where it does not conflict with the preceding criteria in this subdivision, election districts shall be drawn to encourage geographical compactness in a manner that nearby areas of population are not bypassed in favor of more distant populations. (d) The districting body shall not adopt election district boundaries for the purpose of favoring or discriminating against an incumbent, political candidate, or political party. (e) The districting body shall not adopt election district boundaries using any criterion that is prioritized over the criteria in subdivision (c) or that, expressly or as applied, conflicts with one of the requirements in subdivisions (a) to (d), inclusive, except as provided in subdivision (g). The election district boundaries were adopted using the criteria as set forth in Election Code 21130(c)(1) through (5) in order of priority. The City Council did not adopt election district boundaries for the purpose of favoring or discriminating against an incumbent, political candidate, or political party. The City Council did not adopt election district boundaries using any criterion that is prioritized over the criteria in subdivision (c) or that, expressly or as applied, conflicts with one of the requirements in subdivisions (a) to (d), inclusive. The basis on which the City Council made its decision were the requirements and criteria of Election Code 21130, including, in part, the following identified communities of interest: 1. The redrawn election district boundaries do not split neighborhoods (gated communities and HOAs). 2. District 2 is a highly compact district uniting the communities and neighborhoods in the southern region of the city and whose borders follow clear and major visible features (the freeway and the canal). 3. District 3 keeps residents bordering the Mid-Valley Channel together, as proximity to the channel (and flood-related issues) creates a number of shared geographic and policy concerns, including potential flooding and transportation impacts. 4. District 3 keeps residents bordering the future commuter rail infrastructure together. 5. District 5 places Portola Country Club and Desert Green Country Club in the same district, which is useful because these are unique mobile home communities in which residents own the real estate and the mobile home upon which it is placed. These two communities have similar and unique issues that lead to interfaces with the city such as permitting and remediation. Page 635 of 1128 4 6. The border of District 5 also follows clear visible boundaries: Gerald Ford Drive, Portola Avenue, and the boundary wall of the Portola Country Club mobile home community. 7. Map 109 balances future population growth between two districts, thus minimizing the potential population differences among the districts over time. 8. District 4 includes residents along Fred Waring Drive who share a community of interest due to traffic safety concerns, as Fred Waring Drive is a major commuter arterial. The high school is located in District 4, and there are traffic safety concerns as s tudents walk or bicycle along Fred Waring Drive. The residents in the northeastern portion of District 4 have a shared transportation and public safety concern from the traffic impact of commuters cutting through their neighborhoods while trying to find alternative routes to slow traffic on Fred Waring. 9. District 4 residents bordering the oddly positioned territory of Indian Wells are a community of interest as they work together on issues such as traffic management and police, fire, planning and similar partnerships between Palm Desert and Indian Wells. No identified neighborhoods, gated communities, or homeowner’s associations are split into two or more districts. Portions of two school districts, Desert Sands Unified School District and Palm Springs Unified School District, overlap the city. The population of Desert Sands Unified School District requires it to be split into more than two districts. Proposals that would keep Palm Springs Unified School District in a single district were considered, but those proposals divided a number of the neighborhoods and communities of interest identified above. There were no other identified communities of interest that were split into two or more districts. Submitted by: ____________________________________ Anthony J. Mejia City Clerk Approved by the Palm Desert City Council on ___________, 2024. Page 636 of 1128 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 15, 2024 PREPARED BY: Shelby Goodwin, Special Events Coordinator REQUEST: APPROVAL OF PARK ORDINANCE WAIVERS FOR THE 2024 PALM DESERT HALF MARATHON AND 5K AND WILDFLOWER FESTIVAL EVENTS RECOMMENDATION: Approve temporary waiver of the following Palm Desert Municipal Code (PDMC) sections for the 2024 Palm Desert Half Marathon and 5K and Wildflower Festival Events: a. 11.01.20 (Hours of Use in City Parks) b. 11.01.140 (Amplified Sound in City Parks) c. 11.01.080 H (Camping) d. 11.01.080 O (Placement of Advertising Signage in City Parks) e. 11.01.080 Q (Vendor Sales in City Parks) f. 11.01.080 W (Possession/Consumption of Alcohol in City Parks) pursuant to PDMC 9.58.040 BACKGROUND/ANALYSIS: On December 14, 2023, the City Council approved road closures for the Palm Desert Half Marathon and 5K event scheduled for Sunday, February 18, 2024. T he event producer is requesting permission to have a fenced beer garden during the event at the Palm Desert Civic Center Park, which per the Administrative Policy for Use of City-Owned Facilities adopted by the City Council at its June 8, 2023, meeting, requires City Council approval for City-sponsored events. The Wildflower Festival event producer is also planning to have a fenced beer garden at their event scheduled for Saturday, March 2, 2024, at the Palm Desert Civic Center Park. This would also require City Council approval as a City-sponsored event. Additional park ordinance waivers related to each event including use of park hours, amplified sound, placement of advertising signage, and vendor sales are included for approval as well as for the camping waiver, this is being requested so that the event organizers can begin set-up the night before each event and overnight security will be provided. Moving forward, consistent with the Administrative Policy for Use of City-Owned Facilities, staff plans to bring forward one (1) staff report annually for all City-sponsored events requesting approval of park ordinance waivers for City Council approval. Legal Review: This report has been reviewed by the City Attorney’s office. Page 637 of 1128 City of Palm Desert Park Ordinance Waivers for the 2024 Palm Desert Half Marathon and 5K and Wildflower Festiva l Page 2 of 2 Strategic Plan: Approval of park ordinance waivers for these events would impact the following priorities outlined in the 2013-2033 Strategic Plan, Envision Palm Desert – Forward Together: Parks and Recreation Priority 3: Make recreational and exercise opportunities available in all public spaces. Economic Development Priority 3: Create and attract entertainment and events to enhance and expand the Palm Desert economy and lifestyle. Tourism and Marketing Priority 2: Grow existing events and develop new events to enhance the desirability of Palm Desert as a year-round destination. FINANCIAL IMPACT: Sponsorships in the amount of $10,000 were approved by the City Council for the 2024 Palm Desert Half Marathon and 5K and $15,000 for the Wildflower Festival as part of the F iscal Year 2023/24 City Sponsored Events Budget. There is no fiscal impact associated with this request. ATTACHMENT: Administrative Policy for Use of City-Owned Facilities Page 638 of 1128 Resolution No. 2023-070 Page 1 of 13 Exhibit A CITY OF PALM DESERT ADMINISTRATIVE PROCEDURES Subject ADMINISTRATIVE POLICY FOR USE OF CITY OWNED FACILITIES Policy No. Date Issued: June 8, 2023 Approved by Resolution No. 2023-070 Authored by Public Works Department I.PURPOSE The City of Palm Desert owns, operates, manages, and leases a variety of indoor and outdoor space. The intended purpose of those spaces ranges from indoor spaces that are dedicated solely for the conduct of City business to outdoor spaces that promote a diversity of uses. Such spaces include the pavilions and playing fields that can be reserved in advance at the Palm Desert Civic Center Park, Hovley Soccer Park, and Freedom Park together with the Palm Desert Civic Center Park amphitheater that can be rented for larger events. The Palm Desert Community Center and Portola Community Center, both operated by the Desert Recreation District, are additional facilities that can be rented, along with the Palm Desert Aquatic Center, operated by the Family YMCA of the Desert. The purpose of this policy is to support the: •City regulations adopted as Chapter 11.04, Park Reservations and Park Use Permit, as part of the Palm Desert Municipal Code; •Existing agreements with the Desert Recreation District for annual park services and the lease of the Palm Desert Community Center (Contract No. C32410, as amended, and Contract No. C39690); •Existing Facility Use Agreement for lease of space within the Portola Community Center; •Existing agreement with the Family YMCA of the Desert for the management and staffing of the Palm Desert Aquatic Center (Contract No. C36620, as amended); •Existing City Resolutions 2015-34 and 2015-96, establishing a sports facilities use policy and authorizing modifications to the Facility Use Agreement for Youth Sports Organizations, respectively; and •Rules, regulations, and policies of the Desert Recreation District and the Family YMCA of the Desert. Page 639 of 1128 Resolution No. 2023-070 Page 2 of 13 It also serves to create a consistent and uniform City policy directed to the prioritization of uses within certain spaces, including the restriction of some uses that would either interfere with the operation of the Palm Desert Civic Center or the simultaneous use and enjoyment of other outdoor spaces within the City’s parks. This policy clarifies those fees and charges that are due to reserve and use a space by each agency, as may be applicable, and establishes a procedure by which fee waivers may be requested for the waiver of City fees. This policy is intended to complement the existing polic ies adopted by the Desert Recreation District and the Family YMCA of the Desert and has been carefully reviewed to avoid any intentional conflict. Should conflict be identified in the future, the City reserves its ability to interpret this policy or to mak e amendments to it at a later date under the authority granted to the City Manager under the Palm Desert Municipal Code. II.SCOPE This policy and procedure addresses all indoor and outdoor spaces owned, operated, managed, and leased by the City of Palm Desert. III.DEFINITIONS A.“Amusement Activities” means rock walls, rollercoasters, funhouses, gaming trucks, laser tag, ice skating, or other rides or amenities. B.“City” means the City of Palm Desert, California. C.“Commercial Use” means any event organized and conducted by a person, organization or company that does not qualify as a tax -exempt, non-profit organization or governmental agency, and is not a youth recreation/sports league (Class IV). D.“Commercial Recreation League” means a recreation/sports league that does not qualify as a tax-exempt, non-profit organization or governmental agency, including organized adult leagues (Class III). E.“Community Use” means any event organized and conducted by a person, organization or company that qualifies as a tax-exempt, non-profit organization or governmental agency, and that is open to the public (Class II). F.“Community Recreation League” means a recreation/sports league that qualifies as a tax-exempt, non-profit organization or governmental agency (Class I). G.“Event” means an occurrence of a local celebration, fundraiser, athletic, cultural, or educational activity. Page 640 of 1128 Resolution No. 2023-070 Page 3 of 13 H.Inflatables” means temporary air-filled play structures commonly known as bounce houses, jumpers, blow-up slides, etc., with or without water features. I.“League” means a group of sports teams or individual athletes that compete against each other in officiated games in a specific sport. J.“Open to the public” means any area on City property where the public is allowed to be present and may move unfettered. Areas that are open to the public include, but are not limited to, City parks, City parking lots, and any areas of City facilities that provide direct services to the public. K.“Private Use” means an event that is not open to the public. Private Use events include those organized by both residents and non -residents of Palm Desert. L.“Regional park” means a park that is 20 acres or larger in size. Up to 50 people may gather in regional parks without obtaining a permit. Group gatherings of 50 people or more are required to obtain a permit. IV.RESERVABLE AND OPEN USE SPACES AND FACILITIES Reservable spaces within the City are limited. Due to this limitation, there is a potential that not all requests for reservation will be granted. In the event tha t the City receives multiple applications for the use of the same facility on the same date, the application that was filed first shall receive priority. In addition, should an organization successfully make a reservation, this does not guarantee availability for future use. Special event requests that also encompass areas outside of the City parks or facilities are subject to approval of a separate Special Events Application. The following spaces are available for reservation and use within the City: A.Palm Desert Civic Center a.Civic Center Park Pavilions (5 pavilions) b.Ball fields and courts (4 baseball fields*, 6 tennis courts, 4 beach volleyball courts, 3 basketball courts) c.Civic Center Park Amphitheater d.Palm Desert Aquatic Center B.Palm Desert Community Center & Gymnasium (Gymnasium (basketball/volleyball/pickleball), 2 multipurpose rooms) C.Portola Community Center (2 Multipurpose rooms) – only Class I or Class II non-profit community groups based in the City of Palm Desert D.Freedom Park Baseball Fields* (3 baseball fields, 1 football field, 1 soccer field) E.Hovley Soccer Park Fields* (5 soccer fields) F.Palm Desert City Council Chambers – only Class II governmental organizations G.Other Parks & Open Spaces not listed above * Use of these spaces by Class I (Community Recreation Leagues) also may permit the use of the corresponding snack bar. The use of the snack bars is subject to approval by the Director of Public Works and contingent upon the user Page 641 of 1128 Resolution No. 2023-070 Page 4 of 13 organization providing adequate maintenance and ca re of City property per the Facility Use Agreement. V.RESERVATION PROCESS A.Application and Fees Facility rentals for activities or events are required for groups gathering in a regional park with an anticipated attendance of 50 people or more. Applications must be completed and submitted to the organization contracted by the City for management of the facility. Additional fees apply for groups of over 100 people. Organizations requesting use of both City parks and areas within the public right-of-way are required to complete a Special Event Application. City facilities must be used for the purpose stated in the application, or the event/use is subject to cancellation without refund. Applications must be completed at least 30 days in advance for all reservations. For amphitheater rental, applications may be submitted up to 180 days in advance. For all sports fields and courts, applications may be submitted 120 days in advance for the season or year. Other facility rentals may also be submitted 120 days in advance of the event or use. The City reserves the right to refuse the use of any facility if the applicant fails to comply with the terms of this Policy, any applicable laws, rules, and regulations, or if the planned event is not an appropriate usage of the requested facility. Any infraction of the terms of this Policy, any applicable laws, rules, and regulations shall be cause for refusal of any further use of City facilities for a period of 3 years. B.Fees will be assessed based on the City of Palm Desert Master Fee Schedule (Attachment A). Fees are calculated based on the following Class system: •Class I: Community Recreation League •Class II: Community Use •Class III: Commercial Recreation League •Class IV: Commercial Use •Class V: Private Use Fees for the use of City facilities are set in Attachment A and Attachment B. Changes to the fee schedule for the use of reservable open spaces and City facilities may be initiated by the Public Works Director in coordination with the authorized facility management contractor. Fee changes shall be reviewed and ratified by the Parks and Recreation Commission prior to going into effect. In the event that the Parks and Recreation Commission objects to a fee change, the change shall be presented to the City Council for ratification. To the Page 642 of 1128 Resolution No. 2023-070 Page 5 of 13 maximum extent possible, amendments to the fee schedule shall be timed with the City’s annual budgeting process. C.Insurance The City requires a minimum of $1M liability insurance policy with the City named as additional insured for certain uses. Based on the event type, this amount may be increased and/or the City may require additional insurance policies. Insurance is required for the following use types: •All Commercial events and uses (Class III and Class IV) •Events anticipating attendance of 50 people or more •All amphitheater rentals If inflatables or amusement activities are planned for any type of use, the inflatable company must provide a $1M liability policy with the City named as additional insured. D.Alcoholic Beverages a.Section 11.01.080 of the City of Palm Desert Municipal Code prohibits bringing into, consuming or having in their possession in any park an alcoholic beverage as defined in Section 11.01.010, unless waived as provided by Section 9.58.040 of the Municipal Code. b.Section 9.58.040 allows the City Manager, or designee, or City Council to waive this provision in certain circumstances. The City Council may approve such a waiver if the facility use is associated with a community event that is open to the public and is receiving City funding. Examples of these include, but are not limited to, Concerts in the Park, the Wildflower Festival, and the Palm Desert Half Marathon. The City Manager may approve such a waiver if the facility use is associated with a community event that is open to the public but is not receiving City funding and no other waivers of the Municipal Code are needed. Requests for waiver must be received at least 30 days prior to the event. c.Waiver of this provision must ensure that all State and County guidelines and permits are obtained, and any conditions imposed on the applicant must be followed. d.A copy of all permits must be provided to the City prior to the facility use. E.Requests for Fee Waiver a.Waiver of fees administered by the City may be requested in writing to the Parks and Recreation division by emailing parks@cityofpalmdesert.org. Page 643 of 1128 Resolution No. 2023-070 Page 6 of 13 b.Fee waivers must be requested at least 30 days prior to the event and will be considered and approved or denied by the City Manager. F.Requests for Park Use Waivers a.Section 11.04.050 of the City of Palm Desert Municipal Code restricts the issuance of permits for park use for certain situations. Waiver of any of these provisions may be requested in writing to the Parks and Recreation division by emailing parks@cityofpalmdesert.org. b.Park use waivers must be requested at least 30 days prior to the event and will be considered and approved or denied by the City Manager. G.Appeals a.In the event a Request for Fee Waiver or a Request for a Park Use Waiver is denied, an appeal may be requested to a Request for Fee Waiver or Request for Park Use Waiver decision by emailing parks@cityofpalmdesert.org. b.Appeals will be added to the next available City Council meeting agenda for consideration. Page 644 of 1128 Resolution No. 2023-070 Attachment A – MASTER FEE SCHEDULE City of Palm Desert District Master Fee Schedule $20 administrative fee for all rentals Fee Description Class I Class II Class III Class IV Class V Cleaning Deposit 1 Pavilions* (50-100 people) N/A $115 $230 $230 $80 $100 *Residents of the City of Palm Desert are assessed an $80 fee for pavilion rental. Pavilions** (100 people or more) N/A $230 $460 $460 $160 $200 ** Residents of the City of Palm Desert are assessed an $160 fee for pavilion rental. 2 Amphitheater (50-100 people) N/A $230 $230 $230 $230 $2,500 Amphitheater (100 people or more) N/A $460 $460 $460 $460 $5,000 Cleaning deposit may be reduced based on event details. 3 Fields & Courts Baseball N/A $30/hour $20/hour $250 Soccer Basketball Tennis Pickleball (2 courts) Football Other (i.e. volleyball, horseshoes, petanque, etc.) Page 645 of 1128 Resolution No. 2023-070 Full 8-hour day use N/A $150/day $150/day for field $75/day for courts 4 Lights N/A $30/hour $30/hour $30/hour $10/hour Full 8 hour day use N/A $150/day $150/day $150/day $150/day for field $75/day for courts 5 Palm Desert Community Center Monday through Thursday Gymnasium $70/hour $70/hour $140/hour $140/hour $70/hour $1,000 Multipurpose Room $45/hour $45/hour $90/hour $90/hour $45/hour $275 Multipurpose Room & Kitchen $15/hour $15/hour $15/hour $15/hour $15/hour $275 Friday through Sunday Gymnasium $130/hour $130/hour $260/hour $260/hour $130/hour $1,000 Multipurpose Room $75/hour $75/hour $150/hour $150/hour $75/hour $275 Multipurpose Room & Kitchen $15/hour $15/hour $15/hour $15/hour $15/hour $275 6 Portola Community Center Multipurpose Room N/A N/A N/A N/A N/A $275 (non profit/ community groups only) Page 646 of 1128 Resolution No. 2023-070 City of Palm Desert Non-District Master Fee Schedule $20 administrative fee for all rentals Fee Description Class I Class II Class III Class IV Class V Cleaning Deposit 1 Pavilions (50-100 people) N/A $115 $230 $230 $130 $100 Pavilions (100 people or more) N/A $230 $460 $460 $260 $200 2 Amphitheater (50-100 people) N/A $230 $230 $230 $230 $2,500 Amphitheater (100 people or more) N/A $460 $460 $460 $460 $5,000 Cleaning deposit may be reduced based on event details. 3 Fields & Courts N/A Baseball N/A $30/hour $25/hour $250 Soccer Basketball Tennis Pickleball (2 courts) Football Other (i.e. volleyball, horseshoes, petanque, etc.) Page 647 of 1128 Resolution No. 2023-070 Full 8-hour day use N/A $150/day $170/day for field $85/day for courts 4 Lights N/A $30/hour $30/hour $30/hour $20/hour Full 8 hour day use N/A $170/day $170/day $170/day $170/day for field $85/day for courts 5 Palm Desert Community Center Monday through Thursday Gymnasium $70/hour $70/hour $140/hour $140/hour $80/hour $1,000 Multipurpose Room $45/hour $45/hour $90/hour $90/hour $55/hour $275 Multipurpose Room & Kitchen $15/hour $15/hour $15/hour $15/hour $15/hour $275 Friday through Sunday Gymnasium $130/hour $130/hour $260/hour $260/hour $150/hour $1,000 Multipurpose Room $75/hour $75/hour $150/hour $150/hour $85/hour $275 Multipurpose Room & Kitchen $15/hour $15/hour $15/hour $15/hour $15/hour $275 6 Portola Community Center Multipurpose Room N/A N/A N/A N/A N/A $275 (non profit/ community groups only) Page 648 of 1128 Resolution No. 2023-070 Attachment B – PALM DESERT AQUATIC CENTER FEE SCHEDULE City of Palm Desert Palm Desert Aquatic Center Fee Schedule Fee Description Resident Non-Resident 1 Admissions Adult (13-59) $4 $6 Youth/Senior (6-12 & 60+) $3 $4.50 Adult Punch Card 25 $94 $142 Youth/Senior Punch Card 25 $65 $98 Adult 3-Month Pass $150 $225 Youth/Senior 3-Month Pass $110 $165 Adult Annual Pass $550 $825 Youth/Senior Annual Pass $420 $630 2 Water Exercise One Class $6 $8 10 Punch Pass $60 $80 Monthly Pass $65 $85 3 Swim Lessons Group Lessons $63 $84 Recreational Swim Team $87 $116 Private/Semi-Private 30 min. $36 $48 Private/Semi-Private 1 hour $54 $72 Private/Semi-Private 30 min. 10 pack $324 $432 Private/Semi-Private 1 hour 10 pack $486 $648 4 Specialty Rates Full Facility Rental (2-hour minimum) $650/hour $800/hour Add’l lifeguards (as required by PDAC) $20/hour Multi-Use Room Rental $75/hour $150 security deposit Organization (Summer Camps) $3 per person School Field Trip $5 per child Page 649 of 1128 Page 650 of 1128 Page 1 of 1 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 15, 2024 PREPARED BY: Anthony J. Mejia, City Clerk REQUEST: ESTABLISHMENT OF A CITY COUNCIL AD HOC SUBCOMMITTEE ON THE NAMING OF PARKS RECOMMENDATION: Confirm the appointment of Councilmembers Kelly and Trubee to a City Council Ad Hoc Subcommittee on the naming of parks. BACKGROUND/ANALYSIS: City staff began the process of having parklets in the University Park area to be considered for names. Currently, they are referred to as Lots A, B, C, D, and E. In 201 5, the City Council adopted Resolution No. 2015-53 establishing a parks and facilities naming policy. City staff is requesting the creation of a City Council Ad Hoc Subcommittee for input as we go through the process. The subcommittee workplan would include: Review the 2018 Policy and provide guidance on whether to retain as is or modify it. Review the naming process for the parklets and provide guidance. Work with the Parks and Recreation Commission Subcommittee on names to assist staff and provide guidance. Key staff supporting the subcommittee include Shawn Muir, Kevin Swartz, Randy Chavez, and Chris Escobedo. Mayor Quintanilla has nominated Councilmember Kelly, due to her historical knowledge of the City and of the key community members, and Councilmember Trubee, due to his service as the Parks and Recreation Commission liaison. Once confirmed, City staff will update the ro ster of City Council Liaison and Subcommittee Assignments. Legal Review: This report has been reviewed by the City Attorney’s office. FINANCIAL IMPACT: There is no fiscal impact related to this action. ATTACHMENT: Resolution No. 2015-33 – Parks and Facilities Naming Policy Page 651 of 1128 Page 652 of 1128 Page 653 of 1128 Page 654 of 1128 Page 655 of 1128 Page 656 of 1128 Page 1 of 1 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 15, 2024 PREPARED BY: Anthony J. Mejia, City Clerk REQUEST: ESTABLISHMENT OF A CITY COUNCIL AD HOC SUBCOMMITTEE ON MAYORAL ROTATION RECOMMENDATION: Confirm the appointment of Mayor Pro Tem Harnik and Mayor Quintanilla to a City Council Ad Hoc Subcommittee on the Mayoral Rotation. BACKGROUND/ANALYSIS: In September 2021, the City Council adopted Resolution No. 2021 -61 establishing procedures for the selection of the Mayor and Mayor Pro Tem. The current policy sets out the prioritized criteria for selecting the Mayor and Mayor Pro Tem including procedures when two or more members are sworn into office on the same day in the same district. Due to the City’s transition to five single-member districts, it is necessary to update the policy to address the selection process during the transition period and thereafter. There is a myriad of ways to select the Mayor and Mayor Pro Tem and it is requested that the City Council create an Ad Hoc Subcommittee to provide guidance to City staff in researching potential options for presentation to the full City Council. It is anticipated that City staff will complete the research and present options to the City Council prior to the November 2024 General Municipal Election. Legal Review: This report has been reviewed by the City Attorney’s office. FINANCIAL IMPACT: There is no fiscal impact associated with this action. ATTACHMENT: Resolution No. 2021-61 Page 657 of 1128 Page 658 of 1128 RESOLUTION NO. 2021-61 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, RESCINDING ITS RESOLUTION NO. 2015-91 AND RESTATING ITS POLICY ON THE OFFICE OF MAYOR AND THE OFFICE OF MAYOR PRO-TEMPORE WHEREAS, the City Council of the City of Palm Desert, California, must appoint from its own Members two Councilmembers to serve as Mayor and Mayor Pro-Tempore; and WHEREAS, it has been the desire of each City Council serving the City of Palm Desert since incorporation to make these positions honorary in nature, held for a one- year period of time; and WHEREAS, it is this City Council's opinion that each Member elected to the Council is equally qualified and deserving to hold these offices, and each Councilmember should be given ample opportunity to serve in one or both of these offices. NOW, THEREFORE, IT IS HEREBY RESOLVED, by the City Council of the City of Palm Desert, State of California, that the appointments of Mayor and Mayor Pro- Tempore shall be made on an annual rotating basis, and no one Councilmember shall serve a term in either office to exceed a one-year period of time, except when completing the term of a prior Mayor or Mayor Pro-Tempore for less than six months. The selection shall be made and the term commence at the first regular Council Meeting in December each year. BE IT FURTHER RESOLVED that in appointing Mayor Pro-Tempore, priority shall be given to the Member with the longest continuous service since last serving as Mayor, if ever. In appointing Mayor, priority shall be given to the immediately preceding Mayor Pro-Tempore; if the immediately preceding Mayor Pro-Tempore is unwilling or unable to serve as Mayor, priority shall be given to the Member who would otherwise have priority to be appointed Mayor-Tempore. BE IT FURTHER RESOLVED that prior to any Member of the Council being appointed as Mayor, such Councilmember shall have been either a Member of the Council for approximately two (2) years, and the Mayor Pro-Tempore shall have been a Member of the Council for approximately one (1) year prior to being selected for those respective offices; or in the absence of this occurrence, the Member's having served at least one term on the Palm Desert Planning Commission will be sufficient eligibility for appointment to the office. BE IT FURTHER RESOLVED that when two or more Members of the Council are sworn into office on the same day after being elected in the same Municipal Election and in the same district, the order of their service in the Mayoral Rotation shall be established Page 659 of 1128 RESOLUTION NO. 2021-61 by number of votes received at said election, with the Member receiving the highest number of votes being inserted first into the Mayoral Rotation, and the person receiving the next -highest number of votes being inserted next, and so on. BE IT FURTHER RESOLVED that when two or more Members of the Council are sworn into office on the same day after being elected in the same Municipal Election and are in different districts, the order of their service in the Mayoral Rotation shall be established by a coin toss, with the winner being inserted first into the Mayoral Rotation. PASSED, APPROVED, AND ADOPTED on this 30th day of September , 2021 by the following vote, to wit: AYES: HARNIK, JONATHAN, NESTANDE, QUINTANILLA, and KELLY NOES: NONE ABSENT: NONE ABSTAIN: NONE KATHLE ,N KELL ATTEST: 714_, / eata NORMA I. ALLEY, MM TY CLERK CITY OF PALM DESET , CALIFORNIA MAYOR' 1 1 Page 660 of 1128 Page 1 of 1 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 15, 2024 PREPARED BY: Anthony J. Mejia, City Clerk REQUEST: RATIFY A LETTER TO THE CALIFORNIA LEGISLATURE URGING THE PROTECTION OF DEDICATED REGIONAL EARLY ACTION PLANNING GRANTS PROGRAM FUNDING RECOMMENDATION: Ratify a letter to the California Legislature urging the protection of dedicated Regional Early Action Planning Grants (REAP 2.0) program funding. BACKGROUND/ANALYSIS: The Governor proposed a $300 million reversion of REAP 2.0 funds in his January budget. This proposal would have a harmful impact for the City of Palm Desert as well as numerous other Southern California cities, counties, transportatio n agencies, and tribal governments. Within the City of Palm Desert, REAP would provide $8 million to expand the City’s utility capacity to mitigate future severe flooding impacts, directly affecting future and existing housing developments in an area that has experienced recent flood damage. This project will support the development of 3,386 units currently approved and 1,663 units under review. Legal Review: This report has been reviewed by the City Attorney’s office. FINANCIAL IMPACT: There is no fiscal impact associated with issuance of this letter. ATTACHMENT: REAP Letter dated February 8, 2024 Page 661 of 1128 Page 662 of 1128 C I T Y O F P A L M D E S E R T 73-510 FRED WARING DRIVE PALM DESERT, CALIFORNIA 92260-2578 TEL: 760-346-0611 INFO@CITYOFPALMDESERT.ORG February 8, 2024 RE: Protect Dedicated Regional Early Action Planning Grants (REAP2.0) Program Funding Dear President Pro Tempore Atkins, Speaker Rivas, and Budget Chairs Skinner and Gabriel: On behalf of the City of Palm Desert, I urge the Legislature to protect investments made to the Regional Early Action Planning Grants (REAP 2.0) program as you deliberate on the FY 2024-25 State Budget. While we recognize the incredible budget challenge the Legislature now faces, REAP 2.0 must be protected if we are to meet our ambitious climate, housing, and mobility goals. REAP 2.0 is a $600 million program intended to accelerate progress toward California’s climate and housing through strengthened partnerships between regional, local, county, and tribal governments. REAP 2.0 is the only program specifically and exclusively designed to implement the region’s Sustainable Communities Strategies (SCS), as required by SB 375 (2008). For this reason, regions were empowered to develop programs that accelerate infill housing, support efforts for Affirmatively Furthering Fair Housing (AFFH), and reduce vehicle miles traveled (VMT). The Governor proposed a $300 million reversion of REAP 2.0 funds in his January budget. This proposal would be devastating to Palm Desert, as well as numerous other SCAG-region cities, counties, transportation agencies, and tribal governments. In July 2023, the California Department of Housing and Community Development (HCD) approved SCAG’s full REAP 2.0 application, formally committing $246 million to SCAG. Since that time, SCAG has sub-allocated $192 million primarily through competitive programs to 118 transformative, local projects in the SCAG region that implement the Regional Housing Needs Allocation (RHNA) plan and the greenhouse gas (GHG) reducing strategies contained within Connect SoCal, the Regional Transportation Plan/ Sustainable Communities Strategy (RTP/SCS) for the SCAG region. In the City of Palm Desert, REAP would provide $8 million to expand the city’s utility capacity to mitigate future severe flooding impacts, directly affecting future and existing housing developments in an area that has experienced recent flood damage. The project will support the development of 3,386 units currently approved and 1,663 units under review. The Honorable Toni G. Atkins Senate President Pro Tempore State Capitol, Room 205 Sacramento, CA 95814 The Honorable Robert Rivas Speaker California State Assembly P.O. Box 942849 Sacramento, CA 94249-0029 The Honorable Nancy Skinner Chair, Senate Committee on Budget and Fiscal Review State Capitol, Room 5094 Sacramento, CA 95814 The Honorable Jesse Gabriel Chair, Assembly Committee on Budget P.O. Box 942849 Sacramento, CA 94249-0046 Page 663 of 1128 The project in Palm Desert is representative of the many innovative projects awarded through the REAP 2.0 program including a project by LA Metro to support as many as 10,000 new housing units on surplus LA Metro transit lands, more than 1,150 affordable housing units in the Coachella Valley, a low-to- zero-interest loan program to expedite accessory dwelling units in Orange County, infrastructure improvements to support nearly 5,000 newly-zoned housing units in Rialto, and a long-term loan program to promote hundreds of infill homes in Ventura County, among others. These projects play a critical role in increasing housing supply in the near term while also piloting innovative solutions that can be scaled across the region. REAP 2.0 was designed to remove the systemic barriers for developers to build units where needed and planned. Reducing or delaying funding will compromise the program’s integrity and have severe, negative impacts on Palm Desert and the rest of the cities and counties across Southern California. We ask that you reject the Governor’s proposal to halve REAP 2.0 and protect this crucial program. Thank you for considering the City of Palm Desert’s perspective on the REAP 2.0. Sincerely, Karina Quintanilla Mayor, Palm Desert Page 664 of 1128 CITY OF PALM DESERT CITY MANAGER’S OFFICE INTEROFFICE MEMORANDUM Date: February 15, 2024 To: Honorable Mayor and Councilmembers From: Anthony J. Mejia, City Clerk Subject: City Council Meeting of February 15, 2024 Below you will find questions received from the Mayor or Councilmembers and answers provided by City staff regarding tonight’s City Council meeting: ITEM 13h: APPROVE AGREEMENT WITH FLOCK SAFETY FOR AUTOMATED LICENSE PLATE RECOGNITION SOFTWARE SUBSCRIPTION FOR A TERM OF FIVE YEARS Q1: Is there an update on the economic impact, such as property recovery? A1: The ALPR software and CAD system are not designed to capture this information. This requires manual interpretation of reports to extract the data, which requires a significant number of staff hours from the Sheriff's department and will need time to compile this information to provide specifics. The current reporting has been the cumulative number of arrests and property recovered, which for ALPR Assisted Investigations are total arrests: 65, total amount recovered: $437,200. Q2: Any updates on the narcotics and weapons intercepted? A2: The narcotic and weapons recovery are to highlight significant incidents which is provided by the Public Safety Committee, and in the Palm Desert Significant Incident Reports. For example: On December 8, 2023, at 5:15 p.m., deputies received a flock notification of a stolen motorcycle on Monterey Avenue. The deputies located the motorcycle at The Shops on El Paseo. After a short foot pursuit, a male from Yucaipa was arrested for possession of a stolen motorcycle, a stolen handgun, and 13 grams of methamphetamine. Q3: Will Palm Desert continue to opt out of external agencies, so that only those with warrants can access? A3: The City has complied with state law since inception of the roll out of the program. Palm Desert data is only shared with California agencies as permitted by state law. Any outside-of-the-state requests will be sent in writing and reviewed by the Sheriff's Department. Authorization will be provided for that specific case and have a limited amount of time to access the data. Q4: Will we ensure that we maintain ownership of all data and opt into the transparency dashboard portal? A4: The City will continue to maintain ownership of all data. This agreement continues those requirements. Additionally, the City publishes the transparency portal data monthly via the Weekly Administrative Report and at the Public Safety Committee Meetings. The data is verified by city staff to ensure compliance with state law. Supplemental Q&A Memo-1 Page 665 of 1128 02/15/2024 Question & Answer Memo Page 2 of 2 ITEM 13q: RECEIVE AND FILE REPORT RELATED TO TRANSIENT OCCUPANCY TAX COMPLIANCE PROGRAM PERFORMED ON COLLECTIONS RECEIVED DURING FISCAL YEARS 2018-2019 THROUGH 2020-2021 AND WAIVE CERTAIN FINDINGS Q1: Is 30% a normal rate established for contingency fees? A1: Yes. For compliance programs we typically see anywhere from 30-35% as their rate in proposals. ITEM 13v: RATIFY A LETTER TO THE CALIFORNIA LEGISLATURE URGING THE PROTECTION OF DEDICATED REGIONAL EARLY ACTION PLANNING GRANTS PROGRAM FUNDING Due to recent changes in the Legislature’s leadership, the subject letter has been updated to reflect the current officeholders. There are no changes to the content of the letter. Supplemental Q&A Memo-2 Page 666 of 1128 February 14 , 2024 The Honorable Mike McGuires Senate President Pro Tempore 1021 0 Street, 85 18 Sacramento, CA 95814 The Honorable Scott Wiener C I l Y a f P Al M 73-5 IO FRED WARING DRIV E PALM D ESE RT , CALIFOR IA 92260-25 78 TEL: 760 346-0611 info @cityofpalmdesert.org The Honorable Robert Rivas Speaker California State Assembly 1021 0 Street, Suite 8330 Sacramento, CA 95814 The Honorable J esse Gabriel Chair, Senate Committee on Budget and Fiscal Review State Capitol , Room 8620 Chair, Assemb ly Committee on Budget 1021 0 Street, Suite 8230 Sacramento, CA 95814 Sacramento, CA 95814 RE: Protect Dedicated Regional Early Action Planning Grants (REAP2.0) Program Funding Dear President Pro Tempore McGuires, Speaker Rivas , and Budget Chairs Wiener and Gabrie l: On behalfof the City of Palm Desert, I urge the Legis lature to protect investments made to the Regional Early Action Planning Grants (REAP 2 .0) program as you deliberate on the FY 2024-25 State Budget. While we recognize the incredible budget cha ll enge the Legislature now faces , REAP 2.0 must be protected if we are to meet our ambitious climate, housing, and mobility goals . REAP 2.0 is a $600 million program intended to accelerate progress toward California's climate and housing through strength ened partnerships between reg ional, local , county, and tribal governme nt s. REAP 2 .0 is the only program specifically and exc lu sive ly designed to implement the region 's Sustainable Communities Strategies (SCS), as required by SB 3 75 (2008). For this reason , regions were empowered to develop programs that accelerate infill housing, support efforts for Affirmatively Further in g Fair Housing (AFFH), and reduce veh ic le miles traveled (VMT). The Governor proposed a $300 m ii li on reversion of REAP 2 .0 funds in his January budget. This proposal would be devastating to Palm Dese1t , as well as numerous other SCAG-region cities, counties , transportation agencies, and tribal governments. In July 2023 , the California Depa1trnent of Housing and Co mmuni ty Development (HCD) approved SCAG 's full REAP 2.0 application , fonnally comm ittin g $246 million to SCAG . Since that time , SCAG has sub-allocated $192 million primarily through competitive programs to 118 transformative , local projects in the SCAG region that implement the Regional Housing Needs Allocation (RHNA) plan and the greenhouse gas (GHG) reducing strategies contain ed within Connect SoCal , the Regional Tran s portation Plan/ Sustainable Communities Strategy (RTP/SCS) for the SCAG region . In the City of Palm Desert, REAP wou ld provide $8 million to expand the city's utility capacity to mitigate future severe flooding impacts , directly affect in g future and existing housing developments in an area that has experienced recent flood damage. The project wi ll support the development of 3 ,386 units current ly approved and 1,663 units under review. 0 PIINTEDON IIECYCLEO PAPU Page 667 of 1128 The project in Palm Desert is representative of the many innovative projects awarded through the REAP 2.0 program including a project by LA Metro to support as many as 10 ,000 new housing units on surp lu s LA Metro transit lands, more than 1,150 affordab le housing units in the Coache ll a Vall ey, a low-to- zero-interest loan program to expedite accessory dwellin g uni ts in Orange County, infrastructure improvements to support nearly 5,000 newly-zoned hou si ng units in Rialto , and a long-term loan program to promote hundreds of infill hom es in Ventura County, among others . These projects play a critical role in increasing hou si ng s upply in the near term while also piloting innovative so lu tions that can be scaled across the re g ion . REAP 2 .0 was de s ign ed to remove the systemic barriers for developers to build units where needed and planned . Reducing or delaying funding will compromise the program 's integrity and have severe, negative impacts on Palm Desert and the rest of the cities and counties across Southern Cali forn ia. We ask that you reject the Governor's proposa l to halve REAP 2.0 and protect this crucial program . Thank you for consider in g the City of Pa lm Dese11 's perspective on the REAP 2.0. Karina Quin a Mayor, Palm Desert [llY Of PRlffi Of~fRl O nr111rn0Nnmuor.1.ru Page 668 of 1128 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 15, 2024 PREPARED BY: Anthony J. Mejia, City Clerk REQUEST: ADOPT A RESOLUTION ESTABLISHING THE 2024 CITY COUNCIL GOALS AND PRIORITIES RECOMMENDATION: Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ESTABLISHING THE CITY COUNCIL GOALS AND PRIORITIES FOR THE 2024 CALENDAR YEAR.” BACKGROUND/ANALYSIS: On February 7, 2024, the City Council held a Goal Setting Study Session to discuss candidate goals for the calendar year 2024. At this meeting, City staff summarized the status of the existing goals and next steps, followed by each Councilmember presenting their candida te goals for 2023. Following discussion, the City Council recognized that the existing goals are multi -year endeavors and should be continued as goals for another year, except for “Broadband Master Plan,” noting that the plan is nearing completion and adop tion. Below is a summary of the 2024 City Council Goals: 1 Cal State University Palm Desert Campus Continuation Advocate for the creation of a Cal State University Palm Desert Campus or other education related uses on the land donated by the City for this purpose. 2 Economic Development Projects - Desert Willow Strategy Continuation Develop a strategy for the disposition and development of the remaining undeveloped Desert Willow properties. - Business Recruitment Continuation Develop a plan to identify and recruit retail, entertainment, and other business that will contribute to Palm Deserts existing unique shopping and entertainment offerings. - North Sphere Planning Continuation Analyze market conditions, address infrastructure deficiencies, and identify a strategy for potential changes in land use patterns in the North Sphere. 3 Mall Redevelopment Continuation Coordinate with the property owner(s) for an adaptive re-use of the Mall properties that ensures solid tax revenue to the City and builds upon Palm Desert’s vision. Page 669 of 1128 City of Palm Desert Resolution – City Council Goals and Priorities for 2024 Page 2 of 2 4 Sales Tax Initiative New Conduct public outreach and surveying information regarding the City’s budget and financial outlook as it relates to a potential sales tax initiative in November 2024. 5 Environmental Initiatives Continuation Implementation of the Environmental Initiatives Plan including the following: environmentally friendly landscaping, green building materials, solar, alternative fuel vehicles for City fleet, water and energy conservation, recycling, and other sustainability related projects. Work with the Resources Preservation and Enhancement Committee to implement initiatives. 6 North Sphere Parks Continuation Gather community input, design, and build a community and regional park in North Palm Desert. 7 Public Safety Improvements Continuation Explore new technology, review budgets, and gain efficiencies for improved public safety services. 8 Active Transportation Projects Continuation Continue to develop the Active Transportation Project plan that includes opportunities to enhance CV Link, PD Link/bike lanes, and incorporate these projects into the 5-year CIP budget. In addition, the City Council agreed to agendize the below topics for future Study Sessions: Farmers Markets Resident Emergency Response Management Streamline Communications And finally, the City Manager advised that going forward staff will produce an end-of-year report regarding the use of consultants. Legal Review: This report has been reviewed by the City Attorney’s office. FINANCIAL IMPACT: There is no fiscal impact associated with adopting the proposed resolution, however, the fiscal impact of implementing these goals and priorities will be incorporated into the Fiscal Year 2024-25 Budget. AT TACHMENTS: 1. Resolution 2. Exhibit A to Resolution 3. 02/07/2024 Goal Setting Presentation Page 670 of 1128 RESOLUTION NO. 2024 - 004 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ESTABLISHING CITY COUNCIL GOALS AND PRIORITIES FOR THE 2024 CALENDAR YEAR WHEREAS, on February 7, 2024, the City Council convened in a Special Goal Setting Study Session to review the status of the 2023 City Council Goals and Priorities and to establish Goals and Priorities for the 2024 calendar year. NOW , THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. That the 2024 City Council Goals and Priorities are hereby approved and adopted as shown in Exhibit A attached hereto and incorporated herein . ADOPTED ON FEBRUARY 15, 2024. KARINA QUINTANILLA MAYOR ATTEST: ANTHONY J. MEJIA CITY CLERK I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that Resolution No. 2024 - 004 is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Desert on February 15, 2024, by the following vote: AYES: HARNIK, KELLY, NESTANDE, TRUBEE, AND QUINTANILLA NOES: NONE ABSENT: NONE ABSTAIN: NONE IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on _______________. ANTHONY J. MEJIA CITY CLERK Page 671 of 1128 Page 672 of 1128 Exhibit A City of Palm Desert 2024 City Council Goals Goals Description Lead Team Committees/ Subcommittees 1 Cal State University Palm Desert Campus Advocate for the creation of a Cal State University Palm Desert Campus or other education related uses on the land donated by the City for this purpose. Economic Development City Manager’s Office CV Priority One 2 Economic Development Projects Desert Willow Strategy Develop a strategy for the disposition and development of the remaining undeveloped Desert Willow properties. Economic Development Development Services Economic Development Subcommittee Business Recruitment Develop a plan to identify and recruit retail, entertainment, and other business that will contribute to Palm Deserts existing unique shopping and entertainment offerings. Economic Development North Sphere Planning Analyze market conditions, address infrastructure deficiencies, and identify a strategy for potential changes in land use patterns in the North Sphere. Economic Development Development Services 3 Mall Redevelopment Coordinate with the property owner(s) for an adaptive re- use of the Mall properties that ensures solid tax revenue to the City and builds upon Palm Desert’s vision. Economic Development City Manager’s Office Economic Development Subcommittee 4 Sales Tax Initiative Conduct public outreach and surveying information regarding the City’s budget and financial outlook as it relates to a potential sales tax initiative in November 2024. Finance City Manager’s Office 5 Environmental Initiatives Implementation of the Environmental Initiatives Plan including the following: environmentally friendly landscaping, green building materials, solar, alternative fuel vehicles for City fleet, water and energy conservation, recycling, and other sustainability related projects. Work with the Resources Preservation and Enhancement Committee to implement initiatives. Economic Development Public Works Resource Preservation & Enhancement Committee (RPEC) 6 North Sphere Parks Gather community input, design, and build a community and regional park in North Palm Desert Public Works Parks & Recreation Committee 7 Public Safety Improvements Explore new technology, review budgets, and gain efficiencies for improved public safety services. City Manager’s Office Development Services Public Safety Committee 8 Active Transportation Projects (ATP) Continue to develop the Active Transportation Project plan that includes opportunities to enhance CV Link, PD Link/bike lanes, and incorporate these projects into the 5- year CIP budget. Capital Projects ATP Subcommittee Page 673 of 1128 Page 674 of 1128 Palm Desert City Council Goal Setting Session F e b r u a r y 7 , 2 0 2 4 Page 675 of 1128 WHY ARE WE HERE? Review progress on 2023 Goals Receive input & direction for 2024 Goals Page 676 of 1128 RECAP 2023: CSU Palm Desert Campus Advocate for the creation of a Cal State University Palm Desert Campus or other education- related uses on the land donated by the City for this purpose. NEXT STEPS Secured $79 million in State funding dedicated to new building improvements at the Palm Desert campus. The new Student Services building was approved by the CSU Board of Trustees in September 2023, and the preparation of construction drawings is underway. Construction plans must be reviewed and approved by the Division of the State Architect prior to commencing constructionPriority One Coachella Valley (P1CV) and City staff remained in contact with leadership at CSUSB- PDC to determine timing for improvements and construction of the new Student Services Building.Student Services Advisory Committee is exploring fundraising and sponsorships for other site improvements including a new clock tower. Two Councilmembers, City Manager, and Economic Development Director were appointed to participate in the “Palm Desert Student Services Building Community Advisory Committee,” which is charged with guiding the efforts on new building improvements at the campus. Construction of the Student Services Building is anticipated from summer 2025 through the end of 2027 with building occupancy in 2028. ACCOMPLISHMENTS Page 677 of 1128 Develop a strategy for the disposition and development of the remaining Desert Willow properties. RECAP 2023: Desert Willow Strategy NEXT STEPS On June 23, 2023, the City Council adopted a series of resolutions declaring the remaining vacant parcels at Desert Willow (Parcels C, D, and E) as surplus and to be disposed of through the SLA process. The City is working through the SLA process with a developer for acquisition of Parcels C, D, and E and anticipates completing the SLA process in Q1 2024 pending approval by the Department of Housing and Community Development. Final design of the new parking lot, with future expansion for parks/open space, on Parcel A of Desert Willow. This parking lot was substantially completed and open for us in December 2023. A market study for the remaining vacant parcels was completed and included with the Notice of Availability for Desert Willow Parcels C, D, and E, with the intent of encouraging proposals to meet the market demand study. ACCOMPLISHMENTS Page 678 of 1128 Develop a plan to identify and recruit retail, entertainment, and other businesses that will contribute to Palm Desert’s existing unique shopping and entertainment offerings. RECAP 2023: Business Recruitment NEXT STEPS Staff attended the International Council of Shopping Centers Conference in May 2023 to meet with three retail recruitment strategy firms and have received scope of services from each of the firms. Development of the plans identified is expected to take 9-12 months and will include outreach to the local business community, councilmembers, staff, and residents. The plan is expected to be in front of the City Council prior to September 2024. Awarded contract to “The Retail Coach” on November 16, 2023, for business recruitment services. The contract term is through 2024 with an option for the City to extend it one additional year. Initial kick-off meeting held with “The Retail Coach” in December 2023 with direction given to develop a “gap analysis,” trade-area psychographics profile and competing community analysis. Direction was also given to identify potential regional and fly- market operators that are in expansion mode and which may be viable businesses in Palm Desert. ACCOMPLISHMENTS Receipt and review of gap analysis and potential national and regional business recruitment strategy Q2 2024. Staff and TRC are strategizing on a plan that includes meeting with potential operators at the upcoming ICSC Conferences in Monterey, CA (March 2024) and Las Vegas, NV (May 2024). Page 679 of 1128 Analyze the recommendations of the CBRE study for potential changes in land use patterns in the North Sphere. RECAP 2023: North Sphere Planning NEXT STEPS Awarded contract for Objective Design Standards for residential and mixed-use development. Based on input from community engagement meetings, and Study Sessions with the Planning Commission, Architectural Review Commission, and City Council, published a comprehensive set of design standards which implements CBRE housing goals. The adoption of these standard will occur in early 2024. Awarded contract to update the University Neighborhood Specific Plan (UNSP) modifying land use intensities/densities for residential uses, including affordable housing, a town center with commercial uses, updated streetscape, circulation and access, and a regional park. The UNSP update will coincide with the planning efforts for the North Sphere Regional Park to ensure a seamless and coordinated planning effort. Initiated zoning ordinance amendment to modify land use table, including a change to make personal storage facilities discretionary land uses as recommended by the CBRE and 2023 broker’s report. ACCOMPLISHMENTS Conduct a market study for the area north of Frank Sinatra to determine the types of retail users that could be supported in the area. Page 680 of 1128 Conduct market and land use planning studies to evaluate options for adaptive reuse of the mall, resulting in a Mall Master Plan. RECAP 2023: Mall Redevelopment NEXT STEPS City acquired a 7.4-acres parcel inclusive of the former Sear’s building and parking areas. City staff are looking at short-term specialty leasing options (leasing of City-owned parking areas) to recoup monies spend on CAM charges. Met with Pacific Retail Capital Partners (PRCP) to discuss their possible acquisition of the mall and to ensure the City’s and PRCP vision for use and redevelopment of the site are aligned. City staff is engaged with PRCP to better understand their timelines for operating the property. PRCP is establishing management protocols to work with existing businesses and working on new leases. A new General Manager is in place and full ownership and operations are now under PRCP.City staff remains engaged with CBRE to maintain tenant relationships, identify additional tenants, and assist through any redevelopment discussions. Anticipate more robust discussions with PRCP about redevelopment in Q2/Q3 2024. Once a redevelopment strategy is agreed to, in principle, entitlements for a Specific Plan and Environmental documents will be submitted for City Council and public consideration. The anticipated timeline for this is Q4 2024/Q1 2025. ACCOMPLISHMENTS Page 681 of 1128 Develop a Broadband Master Plan that assesses whether and how the City can enhance connectivity for businesses and residents, while working with, and factoring in the work accomplished by federal, state, and regional resources. RECAP 2023: Broadband Master Plan NEXT STEPS Executed an agreement with HR Green to develop a broadband study. Anticipated City Council adoption of the Broadband Master Plan is March 2024. In December 2023, City staff conducted an interview with Arcadis to determine the feasibility of a partnership for build-out and operations of a broadband network. Arcadas stated that they are interested but they will need time to do their own market research into the area once the City’s master plan is adopted. Release new RFP to identify partners, and negotiate terms, for implementation of the Broadband Master Plan. Held a second City Council Study Session with HR Green regarding the Broadband Master Plan on January 11, 2024. Research grant opportunities and apply as appropriate. ACCOMPLISHMENTS Page 682 of 1128 Implementation of the 5-year plan of Environmental Initiatives including the following: environmentally friendly landscaping, green building materials, solar, alternative fuel vehicles for the City fleet, water and energy conservation, and recycling. Work with the Resources Preservation and Enhancement Committee to implement initiatives. RECAP 2023: Environmental Initiatives NEXT STEPS Implemented Environmental Initiatives Plan and began submitting quarterly reports to City Council. Work with staff from various departments and the Resource Preservation and Enhancement Committee to evaluate and implement initiatives. ACCOMPLISHMENTS Continue quarterly reporting on Environmental Initiatives Plan to the City Council. Hire a consultant to conduct GHG inventory and prepare a formal Climate Action Plan. Page 683 of 1128 Gather community input, design, and build a community and regional park in north Palm Desert. RECAP 2023: North Sphere Park NEXT STEPS Community Open House meetings were held on December 3, 2022, January 14, and August 5, 2023.Final construction plans for the north Palm Desert Community Park are to be completed in Q4 2024. Conceptual design developed and presented to the Parks & Recreation Committee, Planning Commission, Architectural Review Commission, Resource Preservation and Enhancement Committee, Cultural Arts Committee, HOAs in the North Sphere and the City Council. Initial feedback incorporated into design. Planning consultant to work with Interwest on regional park location (Portola & Frank Sinatra). Final conceptual design and cost estimating/budget was presented and appoved by the City Council in December 2023. ACCOMPLISHMENTS Page 684 of 1128 Explore new technology, review budgets, and gain efficiency for improved public safety services. Conduct a review of current law enforcement and fire services contracts. RECAP 2023: Public Safety Improvements NEXT STEPS The City Council approved an agreement for the 4th fire station construction management and independent estimator. FS 102 is on track to being brought online in fall 2025. Update the City Council on metrics of the ALPR system and Palm Desert Sheriff staffing model. The City’s transparency portal is published monthly and included in the Weekly Administrative Report. Phase 2 of the ALPR system (102 cameras) was fully installed and a new three-year agreement for law enforcements services with Riverside County Sheriff’s Department was approved by the City Council. Update the City Council on the City’s enhanced emergency services program scheduled for Spring 2024. City staff and the Emergency Services Coordinator responded to tropical storm Hilary in a proactive and effective manner. Currently, staff is working on the FEMA reimbursement following the Presidents declaration of a federal disaster. Review calls for service, response times, and police staffing level additions through the Fiscal Year 2024/25 budget process. ACCOMPLISHMENTS Page 685 of 1128 Analyze relevant studies to develop a 5-year Active Transportation Project plan that includes opportunities to enhance CV Link, PD Link/bike lanes, and incorporate these projects into the 5-year CIP budget. RECAP 2023: Active Transportation Projects NEXT STEPS Completed conceptual plans for Walk and Roll Phase II Commence the construction of Monterey & Fred Waring and Haystack & Hwy 74 Intersection Modifications projects. Commissioned the redesign of various aspects of PD Link Phase II. Finalize design and commence with the construction of the Haystack Road Traffic Calming Improvements Phase II project, which includes considering alternate bike lane designs and pedestrian crosswalks. Held Community meetings to receive input on the Haystack Traffic Calming project Finalize the progressive design/build specifications for Walk & Roll (Phase II) and issue the project RFP. ACCOMPLISHMENTS Began the conceptual plans of Walk & Roll (Phase III). Finalize the design of the PD Link Phase II project for construction. Page 686 of 1128 Member Priority 1 Priority 2 Priority 3 Priority 4 Kelly Synergize existing goals Nestande CSU Palm Desert Annexation North of I-10 Mall Redevelopment Trubee Traffic Enforcement Farmers Market Assessment of Spending on Consultants Feasibility of STR Development Harnik Economic Development Health & Environment Parks Sales Tax Initiative Quintanilla CSU Palm Desert Resident Emergency Response Management Streamline Communication 2024 Candidate Goals Summary Page 687 of 1128 Priority Title Description 01 Synergize Existing Goals (Continuation)While this has been done to some extent, the time is ripe to make it a dominant focus. Justification: The redevelopment of the Mall and re-examination of downtown zoning are highly consequential to the City’s future and we MUST accomplish them with full attention to existing goals: 1) Education: Can anything be sited at the Mall? 2) Sustainability: Microgrid at the Mall? Transportation hub? 3) Economic Diversity: How can these two projects stimulate UNIQUE local business offerings (possibly working with iHub start-ups? 4) Housing: Mixed use at the Mall, aiding retail and taking some pressure off less-well-suited locations. 2024 Candidate Goals - Councilmember Kelly Page 688 of 1128 Priority Title Description 01 CSU Palm Desert Campus (Continuation) Continued efforts for the creation of a Cal State University Palm Desert campus or other education-related uses on the 170-acres the City provided for this purpose. Justification: Education is the foundation for future growth and stability in Palm Desert and our region. 02 Annexation North of I-10 (Continuation)Work with stakeholders to explore annexation of the areas north of the I-10 freeway. Justification: This area is in our sphere of influence and our City needs to control development. I have had this as a priority for some years. With the Arena now built under Riverside County jurisdiction, it could have been part of Palm Desert. Time is of the essence. 03 Mall Redevelopment (Continuation)Continue to evaluate options for adaptive reuse of the Mall. Justification:It is the center of our region and key to economic stability and growth. 2024 Candidate Goals - Councilmember Nestande Page 689 of 1128 Priority Title Description 01 Traffic Enforcement (Continuation)Finalize implementation of increased traffic enforcement within our City. Justification: Complaints from residents as well as first hand observations. 02 Farmers Market (Continuation) Double the number of vendors and foot traffic at our Farmers Market. May require reducing the number of markets from two to one as well as move of venue. Justification:Farmers Markets provide a valuable sense of community as well as an alternative from corporate manufactured produce and food. They promote good health and supporting Farmers Markets is a stated goal of our General Plan. 2024 Candidate Goals - Councilmember Trubee Page 690 of 1128 Priority Title Description 03 Assessment of our Spending on Consultants Provide an assessment of spending on consultants measured both in total dollars as well as a percentage of our budget for a 5-10 year period. Justification:Concern voiced by some residents. In addition, I would like to put it into perspective for my own edification. I want to ensure that we are getting maximum value for our dollars. 04 Feasibility of Creating STR-only Development To capture TOT revenue for the City and compete with our neighboring cities who have more lax STR policies. Justification:None provided. 2024 Candidate Goals - Councilmember Trubee Page 691 of 1128 Priority Title Description 01 Economic Development (Continuation) Explore and develop approaches to foster relationships and clear communication with land owners and brokers to work towards common goals aligned with PD vision. Research possible motivators/incentives for land-owners and brokers that will achieve PD’s goals. Justification: Palm Desert’s main source of revenue is sales tax. The commercial offerings must be unique and high quality while lifting the image of the community and motivating visitors and residents to shop and stay in Palm Desert. 02 Health & Environment (Continuation) Continue work to create an environmentally healthy community that also support personal health. Justification:Our community members are a great asset and their health is of great importance. Additionally, a healthy environment is attractive to new home owners and visitors. 2024 Candidate Goals - Mayor Pro Tem Harnik Page 692 of 1128 Priority Title Description 03 Park Initiatives (Continuation)Keep working on the park initiatives. Justification: Quality parks and open space are foundational to high quality of life and character of our community. 04 Sales Tax Initiative Public education and information about the City’s budget and a sales tax initiative in November 2024. Justification:None. 2024 Candidate Goals - Mayor Pro Tem Harnik Page 693 of 1128 Priority Title Description 01 CSU Palm Desert Campus (Continuation) Continue to lobby CSU Chancellor Mildred Garcia, who started in October 2023. To my understanding, previous lobbying efforts did not have students as part of any delegation. Student stories are much more compelling, especially to other first-generation students, as Dr. Garcia. Justification: Ongoing priority. 02 Resident Emergency Response Management Increase opportunities for members of the community, residents and business owners alike, to have access to CERT training. This training should be offered in different areas of the City and at different hours of the day. Justification: Watching residents evacuated on rafts and with heavy machinery highlighted that when emergencies arise, we may not be able to get to communities easily. CERT has been made available in the past, and we have the opportunity to get more people signed up now that they have seen the potential for damage and the types of emergencies we could face. We have the opportunity to expand on our current emergency response plan. Grant funding is available and due on March 4, 2024. We must apply and bring the resources to Palm Desert. We can explore partnerships with DSUSD to use the high school gym and train large groups, or smaller groups at HOAs. 2024 Candidate Goals - Mayor Quintanilla Page 694 of 1128 Priority Title Description 03 Streamline Information Make effective use of all means of communication between Palm Desert and the community by streamlining information. Justification: When we say the information is on our website, we need to do more to ensure that information is available, accurate, and accessible without digging around for it. 1) Our website is not mobile friendly nor ADA compliant. 2) Discover Palm Desert is not maintained to reflect events taking place in Palm Desert, in favor of highlighting performances and shows in other parts of the region. 3) The Palm Desert app is great for residents to communicate with the City, and not very good for residents to receive information. The events page redirects to Discover Palm Desert, and the calendar feature only shows Sunday through Thursday as a default, and need to scroll over, making it look like we don’t have meetings or events on those days. 4) The Brightside needs a new format that gives ample space for upcoming events and substantive information. It should be a newsletter, and it is 4 pages bulletin board, and only 3.5 pages of a true newsletter. 2024 Candidate Goals - Mayor Quintanilla Page 695 of 1128 1. CSU Palm Desert Campus Nestande/Quintanilla 2. Economic Development Projects a) Desert Willow Strategy b) Business Recruitment c) North Sphere Planning Harnik Farmers Market (Trubee) 3. Mall Redevelopment Nestande 4. Broadband Master Plan 5. Environmental Initiatives Health & Environment (Harnik) 6. North Sphere Park Park Initiatives (Harnik) 7. Public Safety Improvements Traffic Enforcement (Trubee) 8. Active Transportation Projects A. Annexation North of I-10 Nestande B. Assessment of Spending on Consultants Trubee C. Feasibility of STR-Only Development Trubee D. Sales Tax Initiative Harnik D. Resident Emergency Response Management Quintanilla E. Streamline Communication Quintanilla At A Glance - City Council Goals * Councilmember Kelly - Synergize Existing Goals Page 696 of 1128 Page 1 of 1 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 15, 2024 PREPARED BY: Michelle Nance, Deputy Clerk I REQUEST: RECEIVE AND FILE THE INVESTMENT REPORT, GENERAL FUND, PARKVIEW OFFICE COMPLEX, AND DESERT WILLOW GOLF RESORT FINANCIAL MONLTHLY REPORTS FOR NOVEMBER AND DECEMBER 2023 RECOMMENDATION: Receive and file the monthly Investment Report, General Fund, Parkview Office Complex, and Desert Willow Golf Resort Financial Monthly Reports for November and December 2023. BACKGROUND/ANALYSIS: On January 22, 2024, the Finance Committee reviewed the f inancial reports. The Finance Committee reviews the reports on a bi-monthly basis and then the reports are forwarded to the City Council. Staff recommends the reports be received and filed. FINANCIAL IMPACT: There is no financial impact with this action. ATTACHMENTS: 1. City Treasurer’s Investment Report 2. General Fund Report 3. Parkview Office Complex Report 4. Desert Willow Golf Resort Financial Report Page 697 of 1128 Page 698 of 1128 Monthly Investment Summary Report November 2023 _________________________________________________________________________________ CITY OF PALM DESERT YIE LD PE RFORMANCE The City’s current yield of 4.82% is .97% higher than LAIF’s 3.843%, which is our current policy benchmark as of November 2023. ACTIVITY The City’s investment portfolio is summarized here. Investment transactions were executed in accordance with the California State Government Code, the City’s Investment Policy, and all bond indentures. Key Highlights: • 3 million in Agencies matured and reinvested in US Treasury • 7 million was withdrawn from CAMP for a loan to an Affordable Housing Developer OVERVIEW This report summarizes the City’s investment activities and Staff analysis for the month ending November 30, 2023. INVESTMENT SUMMARY CAMP is continuing to outperform LAIF, which is why 169 million is currently held in CAMP. That said, the yield performance chart above shows that CAMP’s growth is slowing in comparison to LAIF’s growth. Staff will continue to monitor and makes transfers between the pooled accounts as yields begin to change. $ Millions Beginning Ending Book Value Purchases &Redemptions &Book Value % of Asset Class 11/1/2023 Deposits Withdrawals 11/30/2023 Portfolio Agencies 23.97$ -$ (3.00)$ 20.97$ 9% Corporates 24.99 - - 24.99 11% US Treasury 8.86 3.00 - 11.86 5% CAMP Pool 175.68 0.78 (7.24) 169.22 73% LAIF Pool 0.91 - - 0.91 0% County Pool 2.72 - - 2.72 1% Investments Total 237.13$ 3.78$ (10.24)$ 230.68$ 100% Custodian ^65.25 0.29 - 65.54 Trustee ^2.95 0.00 - 2.95 Cash 10.69 19.86 (19.19) 11.36 Cash & Cash w/Fiscal Agentys Total 78.89$ 20.15$ (19.19)$ 79.85$ Total 316.03$ 23.93$ (29.43)$ 310.53$ ^ = Restricted funds based upon bond indenture terms. DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE Page 699 of 1128 Monthly Investment Summary Report November 2023 _________________________________________________________________________________ CITY OF PALM DESERT CURRENT ASSET ALLOCATION Currently, investments in Local Government Pooled investments are maxed @ 75% to take advantage of CAMP’s ongoing high yield of 5.58%, and to maintain liquidity during the first half of the fiscal year, as mentioned in the Monthly Financial Report. INVESTMENT MATURITIES Investment scheduled to mature in 0 – 2 years make up 70.24% of core assets. Future asset purchases will be more evenly laddered from 0 – 5 years dependent on cash flow needs due to upcoming capital projects. 9% 11% 5% 75% Max Allocation, Agencies, 100% Max Allocation, Corporates, 30% Max Allocation, US Treasury, 100% Max Allocation, Local Govt, 75% 0%25%50%75%100% Agencies Corporates US Treasury Local Govt Investment Allocation Actual to Max Allocation Max Allocation Allocation 0.00% 10.00% 20.00% 30.00% 0-6M 6-12M 1-2Y 2-3Y 3-4Y 4-5Y 0-6M, 19.07% 6-12M, 25.51%1-2Y, 25.66% 2-3Y, 7.51% 3-4Y, 15.47% 4-5Y, 6.78% Investment Maturity DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE Page 700 of 1128 Monthly Investment Summary Report November 2023 _________________________________________________________________________________ CITY OF PALM DESERT MONTHLY MARKET VALUE CHANGES Market Values for the current month compared to the prior month are now being compared to evaluate market activity based on PFM’s investment recommendations. For the month of November, the overall core investment is performing 0.75% better that the prior month. Market Values October November $ Change Federal Agency 23,405,821.00 20,508,484.00 (2,897,337.00) * Corporate Note 24,280,082.00 24,435,892.00 155,810.00 US Treasury 8,833,039.08 12,000,210.90 3,167,171.82 * Total 56,518,942.08 56,944,586.90 425,644.82 0.753% * The high dollar changes between investment types are related to PFM’s diversification of our portfolio, in order to take better advantage of current available yields. This investment portfolio is in compliance with the provisions of California Government Code Section 53601 and the City of Palm Desert investment policy. Barring unforeseen events, it has sufficient cash to fund city expenditures for the next six months. US Bank Custody Services has provided market value prices for all corporate securities. All balances are bank balances. The "% of Portfolio" calculation on the Portfolio Summary page omits demand deposits. _______________________________________________ Veronica Chavez, Finance Director DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE 1/11/2024 Page 701 of 1128 DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE Page 702 of 1128 DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE Page 703 of 1128 DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE Page 704 of 1128 DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE Page 705 of 1128 DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE Page 706 of 1128 DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE Page 707 of 1128 DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE Page 708 of 1128 DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE Page 709 of 1128 DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE Page 710 of 1128 DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE Page 711 of 1128 DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE Page 712 of 1128 DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE Page 713 of 1128 DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE Page 714 of 1128 DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE Page 715 of 1128 12/4/23, 9 59 AM LAIF Regular Monthly Statement https //laifms treasurer ca gov/RegularStatement aspx 1/1 Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209 0001 (916) 653-3001 December 04, 2023 LAIF Home PMIA Average Monthly Yields CITY OF PALM DESERT CITY TREASURER 73 510 FRED WARING DRIVE PALM DESERT, CA 92260-2578 Account Number: November 2023 Statement Tran Type Definitions Account Summary Total Deposit:0.00 Beginning Balance:911,067.51 Total Withdrawal:0.00 Ending Balance:911,067 51 DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE Page 716 of 1128 DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE Page 717 of 1128 Palm Desert Housing Authority Monthly Investment Summary Report November 2023 _________________________________________________________________________________ CITY OF PALM DESERT This investment portfolio complies with the provisions of California Government Code Section 53601 and the City of Palm Desert investment policy. Barring unforeseen events, it has sufficient cash to fund Housing Authority operations for the next six months. All balances are bank balances. _______________________________________________ Veronica Chavez, Finance Director OVERVIEW This report summarizes the Palm Desert Housing Authority investment activities for the month ending November 30, 2023. INVESTMENT SUMMARY $ Millions Beginning Ending Book Value Purchases &Redemptions &Book Value Asset Class 11/1/2023 Deposits Withdrawals 11/30/2023 CAMP Pool 51.86 0.24 - 52.10 LAIF Pool 1.01 - - 1.01 Investments Total 52.87$ 0.24$ -$ 53.11$ Cash 4.43 0.78 (0.77) 4.44 Total 57.30$ 1.02$ (0.77)$ 57.55$ DocuSign Envelope ID: 076D71AD-20B5-4256-83DF-B5D86BDC68C9 1/12/2024 Page 718 of 1128 DocuSign Envelope ID: 076D71AD-20B5-4256-83DF-B5D86BDC68C9 Page 719 of 1128 DocuSign Envelope ID: 076D71AD-20B5-4256-83DF-B5D86BDC68C9 Page 720 of 1128 12/4/23, 10:03 AM LAIF Regular Monthly Statement https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1 Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209 0001 (916) 653-3001 December 04, 2023 LAIF Home PMIA Average Monthly Yields PALM DESERT HOUSING AUTHORITY CITY TREASURER 73 510 FRED WARING DRIVE PALM DESERT, CA 92260-2578 Account Number: November 2023 Statement Tran Type Definitions Account Summary Total Deposit:0.00 Beginning Balance:1,007,017.89 Total Withdrawal:0.00 Ending Balance:1,007,017 89 DocuSign Envelope ID: 076D71AD-20B5-4256-83DF-B5D86BDC68C9 Page 721 of 1128 RDA Successor Agency Monthly Investment Summary Report November 2023 _________________________________________________________________________________ CITY OF PALM DESERT This investment portfolio is in compliance with the provisions of California Government Code Section 53601 and the City of Palm Desert investment policy. Pursuant to ABX126, the availability of cash to fund the Palm Desert RDA Successor Agency's debt service is dependent upon the County of Riverside and the State of California. All balances are bank balances. _______________________________________________ Veronica Chavez, Finance Director OVERVIEW This report summarizes the RDA Successor Agency investment activities for the month ending November 30, 2023. INVESTMENT SUMMARY Beginning Ending Book Value Purchases &Redemptions &Book Value Asset Class 11/1/2023 Deposits Withdrawals 11/30/2023 CAMP Pool 6,084.24 27.91 - 6,112.15 LAIF Pool 769.22 - - 769.22 County Pool 346.75 - - 346.75 Investments Total 7,200.21$ 27.91$ -$ 7,228.12$ Trustee ^15,777,345.70 1,836.53 - 15,779,182.23 Cash 2,901,229.32 426.45 (6,699.45) 2,894,956.32 Cash & Cash w/Fiscal Agentys Total 18,678,575.02$ 2,262.98$ (6,699.45)$ 18,674,138.55$ Total 18,685,775.23$ 2,290.89$ (6,699.45)$ 18,681,366.67$ ^ = Restricted funds based upon bond indenture terms. DocuSign Envelope ID: 076D71AD-20B5-4256-83DF-B5D86BDC68C9 1/12/2024 Page 722 of 1128 DocuSign Envelope ID: 076D71AD-20B5-4256-83DF-B5D86BDC68C9 Page 723 of 1128 DocuSign Envelope ID: 076D71AD-20B5-4256-83DF-B5D86BDC68C9 Page 724 of 1128 12/4/23, 10:01 AM LAIF Regular Monthly Statement https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1 Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209 0001 (916) 653-3001 December 04, 2023 LAIF Home PMIA Average Monthly Yields S/A TO THE PALM DESERT REDEVELOPMENT AGENCY FINANCE DIRECTOR 73 510 FRED WARING DRIVE PALM DESERT, CA 92260-2578 Account Number: November 2023 Statement Tran Type Definitions Account Summary Total Deposit:0.00 Beginning Balance:769.22 Total Withdrawal:0.00 Ending Balance:769 22 DocuSign Envelope ID: 076D71AD-20B5-4256-83DF-B5D86BDC68C9 Page 725 of 1128 DocuSign Envelope ID: 076D71AD-20B5-4256-83DF-B5D86BDC68C9 Page 726 of 1128 Monthly Investment Summary Report December 2023 _________________________________________________________________________________ CITY OF PALM DESERT YIE LD PE RFORMANCE The City’s current yield is performing better than our current benchmark of LAIF. In relation to the 1Y T-Bill, which fell by .32% over the prior month, causing the City to have a slightly better performance by .06% . ACTIVITY The City’s investment portfolio is summarized here. Investment transactions were executed in accordance with the California State Government Code, the City’s Investment Policy, and all bond indentures. Key Highlights: • 6 million was purchased with CAMP • 5 million in Agencies matured and reinvested in US Treasury OVERVIEW This report summarizes the City’s investment activities and Staff analysis for the month ending December 31, 2023. INVESTMENT SUMMARY CAMP is continuing to outperform LAIF, which is why the additional 6 million was purchased from CAMP. Staff noted that CAMP has yield lost .03%, as indicated by the above chart, and will continue to monitor. $ Millions Beginning Ending Book Value Purchases &Redemptions &Book Value % of Asset Class 12/1/2023 Deposits Withdrawals 12/31/2023 Portfolio Agencies 20.97$ -$ (5.00)$ 15.97$ 6.7% Corporates 24.99 - - 24.99 10.5% US Treasury 11.86 5.13 - 16.99 7.1% CAMP Pool 169.22 6.81 - 176.04 74.1% LAIF Pool 0.91 - - 0.91 0.4% County Pool 2.72 0.02 - 2.75 1.2% Investments Total 230.68$ 11.96$ (5.00)$ 237.64$ 100% Custodian ^65.54 - - 65.54 Trustee ^2.95 - - 2.95 Cash 11.20 21.81 (31.15) 1.86 Cash & Cash w/Fiscal Agentys Total 79.69$ 21.81$ (31.15)$ 70.35$ Total 310.37$ 33.77$ (36.15)$ 307.99$ ^ = Restricted funds based upon bond indenture terms. 4.21 4.53 4.59 4.82 4.82 4.9 City Yield 3.3 3.3 3.59 3.67 3.843 3.929 5.37 5.37 5.46 5.44 5.16 4.84 1Y T-Bill 5.31 5.52 5.55 5.56 5.58 5.55 3 3.5 4 4.5 5 5.5 6 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec Yield Performance -Total Porfolio In Percentages City Yield LAIF Yield 1Y T-Bill CAMP DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 Page 727 of 1128 Monthly Investment Summary Report December 2023 _________________________________________________________________________________ CITY OF PALM DESERT CURRENT ASSET ALLOCATION Earnings in Q4 were higher than anticipated, causing a .62% excess in permitted deposits with Local Governments. Assets have been reallocated to bring it back in line with the policy. MANAGED PORTFOLIO MATURITIES Compared to November’s Investment Maturity Chart the ladder for the managed portfolio is beginning to be spread out with 38.85 % of investments scheduled to mature in 2-5 years 0.00% 10.00% 20.00% 30.00% 0-6M 6-12M 1-2Y 2-3Y 3-4Y 4-5Y 25.50%27.08% 8.57% 11.92%17.01% 9.92% Investment Maturity Agencies, 6.72% Corporates, 10.52% US Treasury, 7.15% Local Govt, 75.62% 0%25%50%75%100% Agencies Corporates US Treasury Local Govt Investment Allocation Actual to Max Allocation Max Allocation Allocation DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 Page 728 of 1128 Monthly Investment Summary Report December 2023 _________________________________________________________________________________ CITY OF PALM DESERT MONTHLY MARKET VALUE CHANGES For the month of December shows an overall increase of 1.115% compared to the prior month. Market Values November December $ Change Federal Agency 20,508,484.00 17,386,214.86 (3,122,269.14) * Corporate Note 24,435,892.00 24,601,929.00 166,037.00 US Treasury 12,000,210.90 15,591,367.00 3,591,156.10 * Total 56,944,586.90 57,579,510.86 634,923.96 1.115% * The high dollar changes between investment types are related to PFM better diversifying our portfolio, in line with our current portfolio, to take better advantage of high available yields. This investment portfolio is in compliance with the provisions of California Government Code Section 53601 and the City of Palm Desert investment policy. Barring unforeseen events, it has sufficient cash to fund city expenditures for the next six months. US Bank Custody Services has provided market value prices for all corporate securities. All balances are bank balances. The "% of Portfolio" calculation on the Portfolio Summary page omits demand deposits. _______________________________________________ Veronica Chavez, Finance Director DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 1/12/2024 Page 729 of 1128 For the Month Ending December 31, 2023Managed Account Summary Statement CITY OF PALM DESERT - Total Cash Basis Earnings Plus Net Realized Gains/Losses Less Purchased Interest Related to Interest/Coupons Interest/Dividends/Coupons Received Earnings Reconciliation (Cash Basis) - Managed Account Less Beginning Accrued Interest Less Beginning Amortized Value of Securities Less Cost of New Purchases Plus Coupons/Dividends Received Plus Proceeds of Maturities/Calls/Principal Payments Plus Proceeds from Sales Ending Accrued Interest Ending Amortized Value of Securities Earnings Reconciliation (Accrual Basis) $56,944,586.90 (5,000,000.00) 0.00 5,131,210.95 0.00 503,713.01 $57,579,510.86 216,056.30 (25,943.26) 0.00 $190,113.04 Total 58,028,140.36 272,184.91 0.00 5,012,500.00 203,556.30 (5,157,154.21) (57,869,708.92) (345,974.29) Total Accrual Basis Earnings $143,544.15 Closing Market Value Change in Current Value Unsettled Trades Principal Acquisitions Principal Dispositions Maturities/Calls Opening Market Value Transaction Summary - Managed Account _________________ _________________ _______________________________________________ _______________________________________________Reconciling Transactions Net Cash Contribution Security Purchases Principal Payments Coupon/Interest/Dividend Income Sale Proceeds Maturities/Calls Cash Transactions Summary - Managed Account 5,012,500.00 0.00 203,556.30 0.00 (5,157,154.21) 0.00 0.00 Cash Balance $349,340.34 Closing Cash Balance Account 68910100 Page 1 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 Page 730 of 1128 For the Month Ending December 31, 2023Portfolio Summary and Statistics CITY OF PALM DESERT - Account Summary Percent Par Value Market ValueDescription U.S. Treasury Bond / Note 18,325,000.00 17,386,214.86 30.20 Federal Agency Bond / Note 16,000,000.00 15,591,367.00 27.08 Corporate Note 25,000,000.00 24,601,929.00 42.72 Managed Account Sub-Total 59,325,000.00 57,579,510.86 100.00% Accrued Interest 272,184.91 Total Portfolio 59,325,000.00 57,851,695.77 Unsettled Trades 0.00 0.00 Sector Allocation 42.72% Corporate Note 27.08% Fed Agy Bond / Note 30.20% US TSY Bond / Note 0 - 6 Months 6 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years Over 5 Years 25.50% 27.08% 8.57% 11.92% 17.01% 9.92% 0.00% Maturity Distribution Characteristics Yield to Maturity at Cost Yield to Maturity at Market Weighted Average Days to Maturity 690 2.98% 5.00% Account 68910100 Page 2 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 Page 731 of 1128 For the Month Ending December 31, 2023Managed Account Issuer Summary CITY OF PALM DESERT - Credit Quality (S&P Ratings) 5.11% A 15.27% A+ 8.57% A- 5.12% AA 57.27% AA+ 8.66% BBB+ Issuer Summary Percentof HoldingsIssuer Market Value 2,947,026.00 5.12 AMAZON.COM INC 2,942,757.00 5.11 CATERPILLAR INC 4,785,150.00 8.31 FEDERAL FARM CREDIT BANKS 5,813,112.00 10.10 FEDERAL HOME LOAN BANKS 4,993,105.00 8.67 FREDDIE MAC 4,988,055.00 8.66 GOLDMAN SACHS GROUP INC 4,932,180.00 8.57 MORGAN STANLEY 8,791,911.00 15.27 TOYOTA MOTOR CORP 17,386,214.86 30.19 UNITED STATES TREASURY $57,579,510.86 Total 100.00% Account 68910100 Page 3 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 Page 732 of 1128 For the Month Ending December 31, 2023Managed Account Detail of Securities Held CITY OF PALM DESERT - Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Original YTM Accrued Amortized MarketTrade Settle Par U.S. Treasury Bond / Note US TREASURY NOTES DTD 06/15/2023 4.125% 06/15/2026 1,000,000.00 979,592.37 1,915.98 977,929.69 10/20/2310/17/23AaaAA+ 1,000,000.00 91282CHH7 5.02 US TREASURY NOTES DTD 07/15/2023 4.500% 07/15/2026 1,009,687.50 991,633.23 20,788.04 990,937.50 10/16/2310/13/23AaaAA+ 1,000,000.00 91282CHM6 4.85 US TREASURY NOTES DTD 08/15/2023 4.375% 08/15/2026 1,007,187.50 989,988.04 16,525.14 989,140.63 10/12/2310/11/23AaaAA+ 1,000,000.00 91282CHU8 4.79 US TREASURY NOTES DTD 09/15/2023 4.625% 09/15/2026 1,267,578.13 1,259,021.30 17,153.16 1,259,228.52 12/08/2312/07/23AaaAA+ 1,250,000.00 91282CHY0 4.34 US TREASURY NOTES DTD 10/31/2019 1.625% 10/31/2026 1,310,750.00 1,290,756.93 3,875.00 1,286,742.19 11/24/2311/22/23AaaAA+ 1,400,000.00 912828YQ7 4.60 US TREASURY N/B NOTES DTD 11/15/2023 4.625% 11/15/2026 1,270,117.25 1,260,085.34 7,464.80 1,260,302.73 12/08/2312/07/23AaaAA+ 1,250,000.00 91282CJK8 4.32 US TREASURY NOTES DTD 04/30/2022 2.750% 04/30/2027 1,010,296.88 980,859.22 4,918.27 976,705.08 10/20/2310/17/23AaaAA+ 1,050,000.00 91282CEN7 4.93 US TREASURY NOTES DTD 07/31/2022 2.750% 07/31/2027 1,032,167.92 1,007,265.18 12,371.26 1,003,067.38 10/12/2310/11/23AaaAA+ 1,075,000.00 91282CFB2 4.69 US TREASURY NOTES DTD 09/30/2020 0.375% 09/30/2027 877,187.50 859,603.05 952.87 855,703.13 11/24/2311/22/23AaaAA+ 1,000,000.00 91282CAL5 4.50 US TREASURY NOTES DTD 10/31/2022 4.125% 10/31/2027 1,006,718.80 979,451.30 7,026.10 978,320.31 10/16/2310/13/23AaaAA+ 1,000,000.00 91282CFU0 4.72 US TREASURY NOTES DTD 11/30/2020 0.625% 11/30/2027 881,718.80 863,284.00 546.45 859,648.44 11/24/2311/22/23AaaAA+ 1,000,000.00 91282CAY7 4.48 US TREASURY NOTES DTD 04/30/2021 1.250% 04/30/2028 1,029,968.75 997,590.81 2,448.49 990,167.97 10/16/2310/13/23AaaAA+ 1,150,000.00 91282CBZ3 4.68 US TREASURY NOTES DTD 05/31/2021 1.250% 05/31/2028 1,027,992.13 996,916.76 1,256.83 989,224.61 10/12/2310/11/23AaaAA+ 1,150,000.00 91282CCE9 4.64 US TREASURY NOTES DTD 06/30/2023 4.000% 06/30/2028 1,005,156.20 966,115.80 109.89 964,609.38 10/20/2310/17/23AaaAA+ 1,000,000.00 91282CHK0 4.85 Account 68910100 Page 4 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 Page 733 of 1128 For the Month Ending December 31, 2023Managed Account Detail of Securities Held CITY OF PALM DESERT - Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Original YTM Accrued Amortized MarketTrade Settle Par U.S. Treasury Bond / Note US TREASURY NOTES DTD 07/31/2021 1.000% 07/31/2028 879,843.80 869,142.84 4,184.78 867,265.63 12/08/2312/07/23AaaAA+ 1,000,000.00 91282CCR0 4.17 US TREASURY NOTES DTD 08/31/2021 1.125% 08/31/2028 883,281.20 872,344.84 3,801.51 870,546.88 12/08/2312/07/23AaaAA+ 1,000,000.00 91282CCV1 4.17 US TREASURY NOTES DTD 09/30/2021 1.250% 09/30/2028 886,562.50 875,589.14 3,176.23 873,867.19 12/08/2312/07/23AaaAA+ 1,000,000.00 91282CCY5 4.17 108,514.80 17,386,214.86 17,039,240.15 4.59 16,993,407.26 18,325,000.00 Security Type Sub-Total Federal Agency Bond / Note FEDERAL HOME LOAN BANK NOTES DTD 07/29/2021 0.400% 07/29/2024 2,919,450.00 3,000,000.00 5,066.67 3,000,000.00 07/09/2107/09/21AaaAA+ 3,000,000.00 3130AN7K0 0.40 FEDERAL HOME LOAN BANK NOTES (CALLABLE) DTD 07/28/2021 0.500% 10/28/2024 2,893,662.00 2,999,886.08 6,375.00 2,999,550.00 07/27/2107/27/21AaaAA+ 3,000,000.00 3130ANAC4 0.50 FEDERAL FARM CREDIT BANK NOTES (CALLABLE DTD 12/23/2020 0.320% 12/23/2024 4,785,150.00 4,990,331.25 355.56 4,967,500.00 09/10/2109/10/21AaaAA+ 5,000,000.00 3133EMLP5 0.52 FREDDIE MAC NOTES (CALLABLE) DTD 12/30/2022 5.250% 12/30/2024 4,993,105.00 5,000,000.00 729.17 5,000,000.00 12/12/2212/12/22AaaAA+ 5,000,000.00 3134GYAB8 5.25 12,526.40 15,591,367.00 15,990,217.33 2.01 15,967,050.00 16,000,000.00 Security Type Sub-Total Corporate Note AMAZON.COM INC CORPORATE NOTES DTD 05/12/2021 0.450% 05/12/2024 2,947,026.00 3,000,000.00 1,837.50 3,000,000.00 07/15/2107/15/21A1AA 3,000,000.00 023135BW5 0.45 CATERPILLAR FINL SERVICE CORPORATE NOTES DTD 05/17/2021 0.450% 05/17/2024 2,942,757.00 2,999,439.94 1,650.00 2,996,100.00 10/06/2110/06/21A2A 3,000,000.00 14913R2L0 0.50 Account 68910100 Page 5 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 Page 734 of 1128 For the Month Ending December 31, 2023Managed Account Detail of Securities Held CITY OF PALM DESERT - Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Original YTM Accrued Amortized MarketTrade Settle Par Corporate Note TOYOTA MOTOR CREDIT CORP CORPORATE NOTES DTD 06/18/2021 0.500% 06/18/2024 2,930,637.00 3,000,000.00 541.67 3,000,000.00 06/15/2106/15/21A1A+ 3,000,000.00 89236TJH9 0.50 TOYOTA MOTOR CREDIT CORP CORPORATE NOTES DTD 06/18/2021 0.500% 06/18/2024 2,930,637.00 2,999,586.12 541.67 2,997,360.00 07/06/2107/06/21A1A+ 3,000,000.00 89236TJH9 0.53 TOYOTA MOTOR CREDIT CORP CORPORATE NOTES DTD 06/18/2021 0.500% 06/18/2024 2,930,637.00 2,999,656.82 541.67 2,997,945.00 09/10/2109/10/21A1A+ 3,000,000.00 89236TJH9 0.52 MORGAN STANLEY CORP NOTES DTD 07/23/2015 4.000% 07/23/2025 4,932,180.00 5,000,000.00 87,777.78 5,000,000.00 08/30/2208/30/22A1A- 5,000,000.00 6174468C6 4.00 GOLDMAN SACHS CORP NOTES (CALLABLE) DTD 10/31/2022 6.750% 10/29/2027 4,988,055.00 5,000,000.00 58,253.42 5,000,000.00 10/27/2210/27/22A2BBB+ 5,000,000.00 38150APM1 6.75 151,143.71 24,601,929.00 24,998,682.88 2.47 24,991,405.00 25,000,000.00 Security Type Sub-Total 59,325,000.00 57,951,862.26 2.98 272,184.91 58,028,140.36 57,579,510.86 Managed Account Sub-Total $59,325,000.00 $57,951,862.26 $272,184.91 $58,028,140.36 $57,579,510.86 2.98% $57,851,695.77 $272,184.91 Total Investments Accrued Interest Securities Sub-Total Account 68910100 Page 6 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 Page 735 of 1128 For the Month Ending December 31, 2023Managed Account Fair Market Value & Analytics CITY OF PALM DESERT - Value On Cost Amort CostCUSIPBrokerDate PriceDated Date/Coupon/Maturity Par at Mkt Market Unreal G/L Unreal G/LNext Call MarketSecurity Type/Description YTMEffective Duration U.S. Treasury Bond / Note 20,407.63 22,070.31 1,000,000.00 100.00 STIFEL 1,000,000.00 91282CHH7US TREASURY NOTES DTD 06/15/2023 4.125% 06/15/2026 4.12 2.36 18,054.27 18,750.00 1,009,687.50 100.97 JPM_CHA 1,000,000.00 91282CHM6US TREASURY NOTES DTD 07/15/2023 4.500% 07/15/2026 4.09 2.39 17,199.46 18,046.87 1,007,187.50 100.72 JPM_CHA 1,000,000.00 91282CHU8US TREASURY NOTES DTD 08/15/2023 4.375% 08/15/2026 4.08 2.47 8,556.83 8,349.61 1,267,578.13 101.41 JPM_CHA 1,250,000.00 91282CHY0US TREASURY NOTES DTD 09/15/2023 4.625% 09/15/2026 4.07 2.55 19,993.07 24,007.81 1,310,750.00 93.63 JPM_CHA 1,400,000.00 912828YQ7US TREASURY NOTES DTD 10/31/2019 1.625% 10/31/2026 4.03 2.78 10,031.91 9,814.52 1,270,117.25 101.61 JPM_CHA 1,250,000.00 91282CJK8US TREASURY N/B NOTES DTD 11/15/2023 4.625% 11/15/2026 4.03 2.71 29,437.66 33,591.80 1,010,296.88 96.22 WELLS_F 1,050,000.00 91282CEN7US TREASURY NOTES DTD 04/30/2022 2.750% 04/30/2027 3.97 3.20 24,902.74 29,100.54 1,032,167.92 96.02 JPM_CHA 1,075,000.00 91282CFB2US TREASURY NOTES DTD 07/31/2022 2.750% 07/31/2027 3.95 3.40 17,584.45 21,484.37 877,187.50 87.72 WELLS_F 1,000,000.00 91282CAL5US TREASURY NOTES DTD 09/30/2020 0.375% 09/30/2027 3.93 3.73 27,267.50 28,398.49 1,006,718.80 100.67 JPM_CHA 1,000,000.00 91282CFU0US TREASURY NOTES DTD 10/31/2022 4.125% 10/31/2027 3.93 3.57 18,434.80 22,070.36 881,718.80 88.17 WELLS_F 1,000,000.00 91282CAY7US TREASURY NOTES DTD 11/30/2020 0.625% 11/30/2027 3.91 3.87 32,377.94 39,800.78 1,029,968.75 89.56 JPM_CHA 1,150,000.00 91282CBZ3US TREASURY NOTES DTD 04/30/2021 1.250% 04/30/2028 3.89 4.22 31,075.37 38,767.52 1,027,992.13 89.39 JPM_CHA 1,150,000.00 91282CCE9US TREASURY NOTES DTD 05/31/2021 1.250% 05/31/2028 3.89 4.30 39,040.40 40,546.82 1,005,156.20 100.52 JPM_CHA 1,000,000.00 91282CHK0US TREASURY NOTES DTD 06/30/2023 4.000% 06/30/2028 3.87 4.09 10,700.96 12,578.17 879,843.80 87.98 JPM_CHA 1,000,000.00 91282CCR0US TREASURY NOTES DTD 07/31/2021 1.000% 07/31/2028 3.89 4.47 10,936.36 12,734.32 883,281.20 88.33 JPM_CHA 1,000,000.00 91282CCV1US TREASURY NOTES DTD 08/31/2021 1.125% 08/31/2028 3.88 4.54 10,973.36 12,695.31 886,562.50 88.66 JPM_CHA 1,000,000.00 91282CCY5US TREASURY NOTES DTD 09/30/2021 1.250% 09/30/2028 3.89 4.60 Account 68910100 Page 7 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 Page 736 of 1128 For the Month Ending December 31, 2023Managed Account Fair Market Value & Analytics CITY OF PALM DESERT - Value On Cost Amort CostCUSIPBrokerDate PriceDated Date/Coupon/Maturity Par at Mkt Market Unreal G/L Unreal G/LNext Call MarketSecurity Type/Description YTMEffective Duration 392,807.60 3.97 346,974.71 17,386,214.86 18,325,000.00 Security Type Sub-Total 3.42 Federal Agency Bond / Note (80,550.00)(80,550.00) 2,919,450.00 97.32 DIRECT 3,000,000.00 3130AN7K0FEDERAL HOME LOAN BANK NOTES DTD 07/29/2021 0.400% 07/29/2024 5.15 0.58 (106,224.08)(105,888.00) 2,893,662.00 96.46 01/28/24DIRECT 3,000,000.00 3130ANAC4FEDERAL HOME LOAN BANK NOTES (CALLABLE) DTD 07/28/2021 0.500% 10/28/2024 4.92 0.10 (205,181.25)(182,350.00) 4,785,150.00 95.70 DIRECT 5,000,000.00 3133EMLP5FEDERAL FARM CREDIT BANK NOTES (CALLABLE DTD 12/23/2020 0.320% 12/23/2024 4.86 0.98 (6,895.00)(6,895.00) 4,993,105.00 99.86 03/30/24DIRECT 5,000,000.00 3134GYAB8FREDDIE MAC NOTES (CALLABLE) DTD 12/30/2022 5.250% 12/30/2024 5.39 0.00 (375,683.00) 5.10 (398,850.33) 15,591,367.00 16,000,000.00 Security Type Sub-Total 0.43 Corporate Note (52,974.00)(52,974.00) 2,947,026.00 98.23 DIRECT 3,000,000.00 023135BW5AMAZON.COM INC CORPORATE NOTES DTD 05/12/2021 0.450% 05/12/2024 5.36 0.37 (56,682.94)(53,343.00) 2,942,757.00 98.09 DIRECT 3,000,000.00 14913R2L0CATERPILLAR FINL SERVICE CORPORATE NOTES DTD 05/17/2021 0.450% 05/17/2024 5.57 0.39 (69,363.00)(69,363.00) 2,930,637.00 97.69 DIRECT 3,000,000.00 89236TJH9TOYOTA MOTOR CREDIT CORP CORPORATE NOTES DTD 06/18/2021 0.500% 06/18/2024 5.58 0.47 (68,949.12)(66,723.00) 2,930,637.00 97.69 DIRECT 3,000,000.00 89236TJH9TOYOTA MOTOR CREDIT CORP CORPORATE NOTES DTD 06/18/2021 0.500% 06/18/2024 5.58 0.47 (69,019.82)(67,308.00) 2,930,637.00 97.69 DIRECT 3,000,000.00 89236TJH9TOYOTA MOTOR CREDIT CORP CORPORATE NOTES DTD 06/18/2021 0.500% 06/18/2024 5.58 0.47 (67,820.00)(67,820.00) 4,932,180.00 98.64 DIRECT 5,000,000.00 6174468C6MORGAN STANLEY CORP NOTES DTD 07/23/2015 4.000% 07/23/2025 4.91 1.51 (11,945.00)(11,945.00) 4,988,055.00 99.76 01/31/24DIRECT 5,000,000.00 38150APM1GOLDMAN SACHS CORP NOTES (CALLABLE) DTD 10/31/2022 6.750% 10/29/2027 6.82 0.09 Account 68910100 Page 8 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 Page 737 of 1128 For the Month Ending December 31, 2023Managed Account Fair Market Value & Analytics CITY OF PALM DESERT - Value On Cost Amort CostCUSIPBrokerDate PriceDated Date/Coupon/Maturity Par at Mkt Market Unreal G/L Unreal G/LNext Call MarketSecurity Type/Description YTMEffective Duration (389,476.00) 5.67 (396,753.88) 24,601,929.00 25,000,000.00 Security Type Sub-Total 0.58 59,325,000.00 57,579,510.86 (372,351.40) (448,629.50) 5.00 Managed Account Sub-Total 1.40 Total Investments $57,851,695.77 $272,184.91 $57,579,510.86 Accrued Interest Securities Sub-Total $59,325,000.00 ($372,351.40) ($448,629.50) 5.00% 1.40 Account 68910100 Page 9 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 Page 738 of 1128 For the Month Ending December 31, 2023Managed Account Security Transactions & Interest CITY OF PALM DESERT - Transaction Type Trade CUSIPSecurity DescriptionSettle Par Proceeds Principal Accrued Interest Total Cost Realized G/L Realized G/L Sale Amort Cost Method BUY 12/08/23 US TREASURY N/B NOTES DTD 11/15/2023 4.625% 11/15/2026 91282CJK8 (1,260,302.73)(3,652.99)(1,263,955.72) 1,250,000.00 12/07/23 12/08/23 US TREASURY NOTES DTD 09/15/2023 4.625% 09/15/2026 91282CHY0 (1,259,228.52)(13,341.35)(1,272,569.87) 1,250,000.00 12/07/23 12/08/23 US TREASURY NOTES DTD 07/31/2021 1.000% 07/31/2028 91282CCR0 (867,265.63)(3,532.61)(870,798.24) 1,000,000.00 12/07/23 12/08/23 US TREASURY NOTES DTD 08/31/2021 1.125% 08/31/2028 91282CCV1 (870,546.88)(3,059.75)(873,606.63) 1,000,000.00 12/07/23 12/08/23 US TREASURY NOTES DTD 09/30/2021 1.250% 09/30/2028 91282CCY5 (873,867.19)(2,356.56)(876,223.75) 1,000,000.00 12/07/23 (25,943.26) (5,157,154.21)(5,131,210.95) 5,500,000.00 Transaction Type Sub-Total INTEREST 12/01/23 MONEY MARKET FUND MONEY0002 0.00 1,181.30 1,181.30 0.00 12/01/23 12/15/23 US TREASURY NOTES DTD 06/15/2023 4.125% 06/15/2026 91282CHH7 0.00 20,625.00 20,625.00 1,000,000.00 12/15/23 12/18/23 TOYOTA MOTOR CREDIT CORP CORPORATE NOTES DTD 06/18/2021 0.500% 06/18/2024 89236TJH9 0.00 22,500.00 22,500.00 9,000,000.00 12/18/23 12/23/23 FEDERAL FARM CREDIT BANK NOTES (CALLABLE DTD 12/23/2020 0.320% 12/23/2024 3133EMLP5 0.00 8,000.00 8,000.00 5,000,000.00 12/23/23 12/30/23 FREDDIE MAC NOTES (CALLABLE) DTD 12/30/2022 5.250% 12/30/2024 3134GYAB8 0.00 131,250.00 131,250.00 5,000,000.00 12/30/23 12/31/23 US TREASURY NOTES DTD 06/30/2023 4.000% 06/30/2028 91282CHK0 0.00 20,000.00 20,000.00 1,000,000.00 12/31/23 203,556.30 203,556.30 0.00 21,000,000.00 Transaction Type Sub-Total MATURITY 12/08/23 FEDERAL HOME LOAN BANK NOTES DTD 11/01/2021 0.500% 12/08/2023 3130APR72 5,000,000.00 12,500.00 5,012,500.00 0.00 0.00 5,000,000.00 12/08/23 12,500.00 0.00 0.00 5,012,500.00 5,000,000.00 5,000,000.00 Transaction Type Sub-Total Account 68910100 Page 10 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 Page 739 of 1128 For the Month Ending December 31, 2023Managed Account Security Transactions & Interest CITY OF PALM DESERT - Transaction Type Trade CUSIPSecurity DescriptionSettle Par Proceeds Principal Accrued Interest Total Cost Realized G/L Realized G/L Sale Amort Cost Method (131,210.95) 190,113.04 58,902.09 0.00 0.00 Managed Account Sub-Total Total Security Transactions $0.00 $58,902.09 $190,113.04 ($131,210.95)$0.00 Account 68910100 Page 11 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 Page 740 of 1128 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 Page 741 of 1128 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 Page 742 of 1128 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 Page 743 of 1128 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 Page 744 of 1128 Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 January 04, 2024 LAIF Home PMIA Average Monthly Yields CITY OF PALM DESERT CITY TREASURER 73-510 FRED WARING DRIVE PALM DESERT, CA 92260-2578 Account Number: December 2023 Statement Tran Type Definitions Account Summary Total Deposit:0.00 Beginning Balance:911,067.51 Total Withdrawal:0.00 Ending Balance:911,067.51 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 Page 745 of 1128 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 Page 746 of 1128 Palm Desert Housing Authority Monthly Investment Summary Report December 2023 _________________________________________________________________________________ CITY OF PALM DESERT This investment portfolio complies with the provisions of California Government Code Section 53601 and the City of Palm Desert investment policy. Barring unforeseen events, it has sufficient cash to fund Housing Authority operations for the next six months. All balances are bank balances. _______________________________________________ Veronica Chavez, Finance Director OVERVIEW This report summarizes the Palm Desert Housing Authority investment activities for the month ending December 31, 2023. INVESTMENT SUMMARY $ Millions Beginning Ending Book Value Purchases &Redemptions &Book Value Asset Class 12/1/2023 Deposits Withdrawals 12/31/2023 CAMP Pool 52.10 3.26 - 55.35 LAIF Pool 1.01 - - 1.01 Investments Total 53.11$ 3.26$ -$ 56.36$ Cash 4.44 0.76 (3.72) 1.48 Total 57.55$ 4.02$ (3.72)$ 57.84$ DocuSign Envelope ID: 3447EC4F-861F-4618-8C3E-7D58D7A79EB1 1/12/2024 Page 747 of 1128 DocuSign Envelope ID: 3447EC4F-861F-4618-8C3E-7D58D7A79EB1 Page 748 of 1128 DocuSign Envelope ID: 3447EC4F-861F-4618-8C3E-7D58D7A79EB1 Page 749 of 1128 Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 January 04, 2024 LAIF Home PMIA Average Monthly Yields PALM DESERT HOUSING AUTHORITY CITY TREASURER 73-510 FRED WARING DRIVE PALM DESERT, CA 92260-2578 Account Number: December 2023 Statement Tran Type Definitions Account Summary Total Deposit:0.00 Beginning Balance:1,007,017.89 Total Withdrawal:0.00 Ending Balance:1,007,017.89 DocuSign Envelope ID: 3447EC4F-861F-4618-8C3E-7D58D7A79EB1 Page 750 of 1128 RDA Successor Agency Monthly Investment Summary Report December 2023 _________________________________________________________________________________ CITY OF PALM DESERT This investment portfolio is in compliance with the provisions of California Government Code Section 53601 and the City of Palm Desert investment policy. Pursuant to ABX126, the availability of cash to fund the Palm Desert RDA Successor Agency's debt service is dependent upon the County of Riverside and the State of California. All balances are bank balances. _______________________________________________ Veronica Chavez, Finance Director OVERVIEW This report summarizes the RDA Successor Agency investment activities for the month ending December 31, 2023. INVESTMENT SUMMARY Beginning Ending Book Value Purchases &Redemptions &Book Value Asset Class 12/1/2023 Deposits Withdrawals 12/31/2023 CAMP Pool 6,112.15 28.82 - 6,140.97 LAIF Pool 769.22 - - 769.22 County Pool 346.75 2.95 - 349.70 Investments Total 7,228.12$ 31.77$ -$ 7,259.89$ Trustee ^15,779,182.23 1,741.43 - 15,780,923.66 Cash 2,894,956.32 - (35,753.70) 2,859,202.62 Cash & Cash w/Fiscal Agentys Total 18,674,138.55$ 1,741.43$ (35,753.70)$ 18,640,126.28$ Total 18,681,366.67$ 1,773.20$ (35,753.70)$ 18,647,386.17$ ^ = Restricted funds based upon bond indenture terms. DocuSign Envelope ID: 3447EC4F-861F-4618-8C3E-7D58D7A79EB1 1/12/2024 Page 751 of 1128 DocuSign Envelope ID: 3447EC4F-861F-4618-8C3E-7D58D7A79EB1 Page 752 of 1128 DocuSign Envelope ID: 3447EC4F-861F-4618-8C3E-7D58D7A79EB1 Page 753 of 1128 Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 January 04, 2024 LAIF Home PMIA Average Monthly Yields S/A TO THE PALM DESERT REDEVELOPMENT AGENCY FINANCE DIRECTOR 73-510 FRED WARING DRIVE PALM DESERT, CA 92260-2578 Account Number: December 2023 Statement Tran Type Definitions Account Summary Total Deposit:0.00 Beginning Balance:769.22 Total Withdrawal:0.00 Ending Balance:769.22 DocuSign Envelope ID: 3447EC4F-861F-4618-8C3E-7D58D7A79EB1 Page 754 of 1128 DocuSign Envelope ID: 3447EC4F-861F-4618-8C3E-7D58D7A79EB1 Page 755 of 1128 Page 756 of 1128 Monthly Financial Report November, 2023 CITY OF PALM DESERT OVERVIEW This report summarizes the City’s financial performance for the month ending November 30, 2023. Financial analysis for this report is provided for the General Fund REVENUES TO DATE As of November 30, 2023, approximately $15.8M or 21% of the General Fund operating budget revenue has been received as detailed below. GENERAL FUND REVENUE EXPLAINED The first half of every fiscal year presents a negative cash flow picture as our primary revenue sources ramp up for the year for the following reasons: Property Tax is received in January/June. Sales Tax is generally highest in Q4 and Q1. Transient Occupancy Tax is also at its peak in Q4 and Q1, as those times are considered “season” for the desert. CY YTD Actual reflects a slight decrease compared to PY Actual and CY Budget. This is on trend with current economic forecasts. Budgets are approved as an annual total, so for the purpose of this report YTD Budget is calculated by percentage of PY YTD Actual. General Govt costs include costs associated with disaster/emergency expenditures related to Tropical Storm Hillary. Expenditure variances may result from timing differences in billing. GENERAL FUNDSUMMARY Page 757 of 1128 Monthly Financial Report November, 2023 CITY OF PALM DESERT Page 2 Timing of expenditures vary throughout the fiscal year. General Government costs include insurance, internal departments costs, homelessness services, audit and contributions. EXPENDITURES TO DATE GENERAL FUND EXPENDITURES This summary report is derived from detailed financial information generated by the City’s Finance Department. If you have questions or would like additional information on this report, please contact the Finance Department via email at vchavez@palmdesert.gov PERFORMANCE SUMMARY Page 758 of 1128 Monthly Financial Report December - 2023 CITY OF PALM DESERT OVERVIEW This report summarizes the City’s financial performance for the month ending December 31, 2023. Financial analysis for this report is provided for the General Fund R EVENUES TO DATE EXPLAINED The first half of every fiscal year presents a negative cash flow picture as our primary revenue sources ramp up for the year for the following reasons: Property Tax is received in January/June. Sales Tax is generally highest in Q4 and Q1. Transient Occupancy Tax is also at its peak in Q4 and Q1, as those times are considered “season” for the desert. CY YTD Actual reflects a slight decrease compared to PY Actual and CY Budget. This is on trend with current economic forecasts. Budgets are approved as an annual total, so for the purpose of this report YTD Budget is calculated by percentage of PY YTD Actual. General Govt costs include costs associated with disaster/emergency expenditures related to Tropical Storm Hillary. Expenditure variances may result from timing differences in billing. GENERAL FUND SUMMARY Page 759 of 1128 Monthly Financial Report December - 2023 CITY OF PALM DESERT Page 2 Timing of expenditures vary throughout the fiscal year. General Government costs include insurance, internal departments costs, homelessness services, audit and contributions. EXPENDITURES TO DATE GENERAL FUND EXPENDITURES This summary report is derived from detailed financial information generated by the City’s Finance Department. If you have questions or would like additional information on this report, please contact the Finance Department via email at vchavez@palmdesert.gov YEAR OVER YEAR COMPARISON Page 760 of 1128 Parkview Office Complex Statement of Activities Month Ended November 30, 2023 November‐23 November‐23 # % YTD YTD # % Budget Actual Variance Variance Budget Actual Variance Variance Revenues* Rental 62,500$ 58,172$ (4,328)$ 93.08% 312,500$ 304,971$ (7,529)$ 97.59% Total Revenues 62,500$ 58,172$ (4,328)$ 93.08% 312,500$ 304,971$ (7,529)$ 97.59% Expenses** Tenant Improvements 10,833$ ‐$ (10,833)$ 0.00% 54,167$ ‐$ 54,167$ 0.00% Repairs & Maintenance‐ Building 2,500$ 3,368$ 868$ 134.74% 12,500$ 4,619$ 7,881$ 36.95% Repairs & Maintenance‐ Streets 1,667$ 376$ (1,291)$ 22.56% 8,333$ 752$ 7,581$ 9.02% Repairs & Maintenance‐ Other Equip 1,667$ ‐$ (1,667)$ 0.00% 8,333$ ‐$ 8,333$ 0.00% CAM Janitorial Services [2] 13,740$ 63,310$ 49,570$ 460.77% 68,700$ 65,842$ 2,858$ 95.84% CAM Landscaping Services 2,642$ 4,600$ 1,958$ 174.13% 13,208$ 9,200$ 4,008$ 69.65% CAM Alarm 315$ 905$ 590$ 287.38% 1,575$ 2,063$ (488)$ 130.96% CAM Pest Control 171$ 512$ 341$ 0.00% 853$ 682$ 171$ 80.00% CAM Utilities‐Gas/Electric [1] 1,175$ 13,634$ 12,459$ 1160.36% 47,542$ 38,185$ 9,357$ 80.32% CAM Utilities‐Waste Disposal 820$ 834$ 14$ 101.66% 4,100$ 4,168$ (68)$ 101.66% CAM Utilities‐Water 400$ 257$ (143)$ 64.13% 2,000$ 1,029$ 971$ 51.46% CAM Utilities‐Telephone 750$ 534$ (216)$ 71.16% 3,750$ 2,097$ 1,653$ 55.92% Total Expenses 36,679$ 88,329$ (51,650)$ 240.82% 225,061$ 128,637$ 96,424$ 57.16% Operating Income 25,821$ (30,157)$ (55,978)$ ‐116.79% 87,439$ 176,334$ 88,895$ 201.66% Equipment Replacement Reserve ‐$ ‐$ ‐$ 0.00%‐$ ‐$ ‐$ 0.00% Net Income 25,821$ (30,157)$ (55,978)$ >100% 87,439$ 176,334$ 88,895$ >100% [1] Amount paid includes October's billing. [2] Amount paid includes July‐ October 2023 billing *Revenues do not include interest income, which is allocated at fiscal year‐end. **CAM charges are broken out for Finance Committee reporting purposes, but are all budgeted as "Common Area Maintenance." Budget overages in CAM line items are often offset by budget savings in other CAM line items. Note: This schedule does not include rents received into this enterprise fund for other City‐owned buildings Page 761 of 1128 Parkview Office Complex Statement of Activities Month Ended December 31, 2023 December-23 December-23 #%YTD YTD #% Budget Actual Variance Variance Budget Actual Variance Variance Revenues* Rental 62,500$ 56,759$ (5,741)$ 90.81%375,000$ 361,730$ (13,270)$ 96.46% Total Revenues 62,500$ 56,759$ (5,741)$ 90.81%375,000$ 361,730$ (13,270)$ 96.46% Expenses** Tenant Improvements 10,833$ 318$ (10,516)$ 2.93%65,000$ 318$ 64,682$ 0.49% Repairs & Maintenance- Building 2,500$ 608$ (1,892)$ 24.30%15,000$ 5,226$ 9,774$ 34.84% Repairs & Maintenance- Streets 1,667$ -$ (1,667)$ 0.00%10,000$ 752$ 9,248$ 7.52% Repairs & Maintenance- Other Equip 1,667$ 512$ (1,154)$ 30.73%10,000$ 512$ 9,488$ 5.12% CAM Janitorial Services 13,740$ 23$ (13,717)$ 0.16%82,440$ 65,865$ 16,575$ 79.89% CAM Landscaping Services 2,642$ 2,000$ (642)$ 75.71%15,850$ 11,200$ 4,650$ 70.66% CAM Alarm 315$ -$ (315)$ 0.00%1,890$ 2,063$ (173)$ 109.13% CAM Pest Control 171$ -$ (171)$ 0.00%1,023$ 682$ 341$ 66.67% CAM Utilities-Gas/Electric 1,175$ 3,761$ 2,586$ 320.13%57,050$ 41,947$ 15,103$ 73.53% CAM Utilities-Waste Disposal 820$ 483$ (337)$ 58.87%4,920$ 4,651$ 269$ 94.53% CAM Utilities-Water 400$ 187$ (213)$ 46.82%2,400$ 1,216$ 1,184$ 50.68% CAM Utilities-Telephone 750$ 423$ (327)$ 56.41%4,500$ 2,520$ 1,980$ 56.00% Total Expenses 36,679$ 8,315$ 28,364$ 22.67%270,073$ 136,952$ 133,122$ 50.71% Operating Income 25,821$ 48,445$ 22,623$ 187.62%104,927$ 224,779$ 119,852$ 214.22% Equipment Replacement Reserve -$ -$ -$ 0.00%-$ -$ -$ 0.00% Net Income 25,821$ 48,445$ 22,623$ >100%104,927$ 224,779$ 119,852$ >100% *Revenues do not include interest income, which is allocated at fiscal year-end. **CAM charges are broken out for Finance Committee reporting purposes, but are all budgeted as "Common Area Maintenance." Budget overages in CAM line items are often offset by budget savings in other CAM line items. Note: This schedule does not include rents received into this enterprise fund for other City-owned buildings Page 762 of 1128 City of Palm Desert Parkview Office Complex Vacancy Rate Schedule by Suite December 31,2023 Rentable Square Feet:51,327 Square Feet Occupied:33,890 % Occupied:66% % Vacant:34% Suite No.Tenant Square Ft. 10-101 Medium Conference Room - 10-104 Large Conference Room - 10-110 Advantec 1,250 10-113 Lift to Rise 720 10-117 Lift to Rise 1,227 10-120 State of California 1,000 10-123 Lift to Rise 758 10-126 ACT for Multiple Sclerosis 928 10-129 Congressman Ken Calvert 41st District 875 10-132 Anser Advisory 1,345 10-135 Desert Recreation District 2,560 10-138 Golden Construction 488 10-141 Small Conference Room - 10-201 State of California 766 10-212 State of California 1,104 10-220 Lift to Rise 1,240 20-100 State of California 15,233 20-102 State of California 4,396 Total Occupied Suites 33,890 sq/ft Suite No.Tenant Square Ft. 10-107 Vacant 1,750 10-205 Vacant 5,730 10-209 Vacant 3,040 10-215 Vacant 5,833 10-219 Vacant 1,084 Total Vacant Suites 17,437 sq/ft Vacancy Rate Summary Occupied Suites Vacant Suites Page 763 of 1128 Page 764 of 1128 Page 765 of 1128 Page 766 of 1128 Page 767 of 1128 Page 768 of 1128 Page 769 of 1128 Page 770 of 1128 Page 771 of 1128 Page 772 of 1128 Page 773 of 1128 Page 774 of 1128 Page 775 of 1128 Page 776 of 1128 Page 777 of 1128 Page 778 of 1128 Page 779 of 1128 Page 780 of 1128 Page 781 of 1128 Page 782 of 1128 Page 783 of 1128 Page 784 of 1128 Page 785 of 1128 Page 786 of 1128 Page 1 of 8 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 15, 2024 PREPARED BY: Veronica Chavez, Director of Finance REQUEST: APPROVAL OF RESOLUTIONS APPROVING 2023-24 MID-YEAR BUDGET ADJUSTMENTS AND REVISED STAFF ALLOCATION SCHEDULE RECOMMENDATION: 1. Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING THE FISCAL YEAR 2023 -24 BUDGET AS A RESULT OF MID-YEAR ADJUSTMENTS”. 2. Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ADOPTING AUTHORIZED CLASSIFICATIONS AND ALLOCATED POSITIONS INCLUDED HEREIN ATTACHED AS EXHIBIT “A” AND RESCINDING RESOLUTION NO. 2023-022”. BACKGROUND/ANALYSIS: Throughout the budget cycle, staff actively monitors actual revenues and expenditures and prepares a report to the City Council at mid-year. The update provides staff with the opportunity to advise the City Council on major budget trends (revenue and expenditure) and propose changes where necessary to meet ongoing service demands or modifications related to economic or other factors. This report provides an update for the General Fund Operating Budget for Fiscal Year 2023-24, and outlines proposed budget adjustments for both general and other funds. Based on staff’s analysis, budget revisions are recommended to 1) implement required technical/rebalancing actions to align existing revenue estimates and expenditure budgets with the most current tracking information, 2) reallocate funding among appropriations based on updated needs; 3) implement technical and net-zero adjustments between revenue categories and expenditure appropriations; and 4) account for new or adjusted grants, reimbursements, or fees. DISCUSSION: On June 22, 2023, the City Council approved the City’s FY 2023 -24 budget with an estimated revenue surplus of $200,482 in the City’s General Fund. At the time the estimates were provided staff was budgeting with the 2023 City Council Goals in mind. With a focus on shoring up deferred facility maintenance. In August, Tropical Storm Hilary presented a new challenge/opportunity to identify weaknesses in the city’s aging infrastructure along with other operational changes. Since budget approval in June, staff has requested just over $9.6 million in appropriations from the various reserve categories, $5.5 million of which are related to the storm clean up, $2 million for a new Land Management System, $1.3M for the library, $.5 Page 787 of 1128 City of Palm Desert 2023-24 Mid-Year Budget Adjustments Page 2 of 8 million for PDAC, and $230,000 for citywide park improvements. These appropriations affect fund balance but are not part of the operating budget discussion for this request. As our major revenue source, Sales Tax has begun to normalize as anticipated and is estimated to show an overall decline of approximately -7.5% by June 30, 2024. Although Transient Occupancy Tax remains on track with prior year growth, history has shown it trends with Sales Tax revenue. Permits and fees have seen increases related to current development activity in the City. We have seen a substantial decline in Cannabis Tax (Special Fund) as it relates to the reduced tax rate approved last year, which will reduce the anticipated transfer into the G eneral Fund this year. Interest earnings have increased dramatically this year as we reap the benefits of current economic conditions. Overall, we anticipate an additional increase of approximately $2.4 Million for a total estimated surplus of $2,240,039 for FY 2023-24. General Fund Revenues The original estimate for FY 2023-24 General Fund revenues was $75,554,467 which represented an increase of approximately $4.37 million (6%) over the FY 2022-23 budget. This estimate was based on recovery indicators and anticipated development activity within the City. What was not known at that time was the impact of the current economic factors as they relate to shoppers and visitors. Staff has continued to evaluate the actual year-to-date revenues and determined that the original estimates need to be increased in the amount of $2.4 million (3%) over the original projected revenues. The net increase includes a substantial increase to interest earning s based on YTD yields. The breakdown on changes to revenue estima tes are included below: Original Budget Mid-Year Adjustment Needed Revised Mid- Year Budget Appropriations from Reserve Thru 1/25/24 Total 2023/24 Appropriations General Fund Revenue 75,554,467 2,420,853 77,975,320 9,616,188 87,591,508 General Fund Appropriations 2023-24 75,353,985 381,296 75,735,281 9,616,188 85,351,469 Revised General Fund Revenu Over/(Under) Expenditures 200,482 2,039,557 2,240,039 - 2,240,039 Page 788 of 1128 City of Palm Desert 2023-24 Mid-Year Budget Adjustments Page 3 of 8 General Fund Expenditures The original estimate for FY 2023 -24 General Fund appropriations was $75,353,985 which represents an approximate increase of $4.17 million (6%) compared to FY 2022-23. The original projections included increases in professional services costs, personnel services and benefits related to the MOU negotiations, and the cost of contracts due to anticipated labor increases, supply chain issues, and material costs as well as the effects of increased minimum wage. An increase in appropriations is being requested for the General Fund. Staff has once again worked dilligently this year to reallocate funds whenever possible to absorb increased costs and maximized use of funds currently allocated. That said, an overall appropriation of $381,296 is necessary based on updated needs as they relate to the storm recovery, staff re-allocation, and current goals and objectives of the City Council. The summarized table on the next page itemizes the requests by department and includes adjustments for personnel expenses related to MOU and attrition, professional services related to 2023 Goals, engineering, IT licensing, plan check, inspections, real estate services, and design related to the downtown overaly zone. GENERAL FUND Original Budget Mid-Year Adjustment Request Revised Budget Request 3133000 - Sales Tax/Meas A Sales Tx 26,623,447 (1,623,447) 25,000,000 3166000 - Business License Tax 1,300,000 (200,000) 1,100,000 3188300 - Transient Occupancy Tax 18,500,000 1,500,000 20,000,000 3199600 - Business Lic Delinq Fee 20,000 10,000 30,000 3199800 - Transient Occ Tax Delinq 20,000 (10,000) 10,000 3221100 - Building Permits 1,228,300 200,000 1,428,300 3221200 - Grading Permits 25,000 (10,000) 15,000 3221500 - ROW Encroachment Permits 150,000 (50,000) 100,000 3221700 - Miscellaneous Permits - 800 800 3221800 - Business Regulatory Perm 22,500 (10,000) 12,500 3365600 - Motor Veh In Lieu Fee 24,000 26,000 50,000 3411300 - Zoning Fees 40,000 10,000 50,000 3411400 - Plan Check Fees 307,768 100,000 407,768 3411500 - Sale Of Map/Plan/Public 5,000 (2,500) 2,500 3424500 - Nuisance Abatement Tax 20,000 (10,000) 10,000 3511100 - Vehicle Code Fines Non-Mv 35,000 (10,000) 25,000 3611000 - Interest Income 500,000 2,500,000 3,000,000 2,420,853 Page 789 of 1128 City of Palm Desert 2023-24 Mid-Year Budget Adjustments Page 4 of 8 Original Budget Mid-Year Adjustment Request Revised Budget Request Salaries Full Time 13,241,360 271,073 13,512,433 Salaries-Overtime 47,000 92,250 139,250 Meeting Compensation 138,768 (1,982) 136,786 Retirement Contribution 4,574,492 (89,373) 4,485,119 Medicare Contrib Employer 194,015 3,918 197,933 Retiree Health 161,786 41,684 203,470 Employer 457 Contribution - 98,850 98,850 Ins Prem Long Term Disability 65,471 1,350 66,821 Ins Prem Health 2,837,217 119,643 2,956,860 Ins Prem Dental/Vision 221,813 8,266 230,079 Ins Prem Life 22,342 471 22,813 Office Supplies 7,500 2,500 10,000 Supplies Other 136,500 (6,000) 130,500 Prof Temp Part Time 30,000 25,000 55,000 Prof Architectural/Eng 337,278 (79,000) 258,278 City Produced Events 548,500 10,000 558,500 Prof_other Admin Expense 4,288,340 (302,853) 3,985,487 Mileage Reimb 500 500 1,000 Conf Seminars Workshops 79,250 (1,500) 77,750 Committee Conferences 5,000 (5,000) - City Wide Training 122,340 35,000 157,340 Local Meetings 2,000 4,250 6,250 R/M Buildings 207,200 11,500 218,700 R/M Landscape Services 1,398,507 (25,000) 1,373,507 R/M Others 196,500 (5,000) 191,500 R/M Motor Vehicles 170,000 25,000 195,000 R/M Medians 1,732,888 (40,000) 1,692,888 R/M Sport Facilities 176,691 (10,000) 166,691 Utilties Water 17,000 10,500 27,500 Utilities Electric 455,000 111,000 566,000 Printing/Duplicating 9,000 (6,750) 2,250 Software License Fees 1,348,029 250,000 1,598,029 Country Admin Fees 70,000 (5,000) 65,000 Liability/Property Damage 1,144,000 (154,000) 990,000 Contrb Museum 40,000 40,000 80,000 Arbor Day 1,500 1,500 3,000 Holiday Decorations 96,400 (10,000) 86,400 Employee Safety 2,500 10,000 12,500 Entrad del Paseo 216,614 5,000 221,614 Capital Office Equipment 95,083 (56,500) 38,583 381,296 Page 790 of 1128 City of Palm Desert 2023-24 Mid-Year Budget Adjustments Page 5 of 8 Other Funds Like the General Fund, the Other Governmental Funds require adjustments to 1) implement required technical/rebalancing actions to align existing revenue estimates and expenditure budgets with the most current tracking information, 2) reallocate fun ding among appropriations based on updated needs; and 3) implement a number of technical and net -zero adjustments between revenue categories and expenditure appropriations. Other governmental funds include transportation, signalization, parks, drainage, fire facility fees, housing mitigation, art in public places, childcare facilities, grant funds, recycling, aquatic center, enterprise funds (including Desert Willow and Parkview Office Complex), capital improvement funds, internal service funds, debt service, assessment districts, landscape and lighting districts and housing authority funds. Estimated revenues for FY 2023 -24 for Other Funds were approved at $72,025,944 with an appropriation of $146,913,035. The variance was to be covered by Fund Balance. Following staff’s analysis, we anticipate an additional amount of $2,161,266 to be Page 791 of 1128 City of Palm Desert 2023-24 Mid-Year Budget Adjustments Page 6 of 8 covered by Fund Balance in Other Funds. Most of the net increase is related to the addition of SARDA budgets to the overall budget. In all prior years, the approved ROPS has served as the budget for SARDA. Below is the breakdown of the adjustments being requested for Other Funds. Other adjustments are based on YTD Actuals. Other Revenue: Other Expenditures The adjustments being requested below are also based on YTD Actuals and interest earnings. There is sufficient fund balance to cover the variance. Original Budget Mid-Year Adjustment Needed Revised Mid- Year Budget Appropriations from Reserve Thru 1/25/24 Total 2023/24 Appropriations Other Funds Revenue 72,025,944 25,210,948 97,236,892 97,236,892 Anticipated Use of Fund Balance 74,887,091 74,887,091 74,887,091 Other Funds Appropriations 146,913,035 27,372,214 174,285,249 174,285,249 Revised Other Fund Revenu Over/(Under) Expenditures - (2,161,266) (2,161,266) - (2,161,266) Original Budget Mid-Year Adjustment Request Revised Budget Request 2340000 - Traffic Signals 3122500 - Signalization Fees 20,000 16,000 36,000 2370000 - Energy Independence Loan 3611500 - Int-Int Fr Loan/Notes Rec - 1,200 1,200 2430000 - Cannabis Compliance Fund 3184200 - Cannabis Tax Sales 1,200,000 (300,000) 900,000 2430000 - Cannabis Compliance Fund 3184201 - Cannabis Tax Manufacturing 2,000 23,000 25,000 2430000 - Cannabis Compliance Fund 3184202 - Cannabis Tax Cultivation 8,000 500 8,500 2430000 - Cannabis Compliance Fund 3199900 - Cannabis Tax Delinq - 1,200 1,200 2710000 - El Paseo Assessm District 3553000 - Special Assessment Levied - 161,770 161,770 2770000 - Zone #1 Prs.Plaza/Parking 3553000 - Special Assessment Levied - 38,000 38,000 4250000 - Economic Development Proj 3790000 - Miscellaneous Revenue - 1,500 1,500 5100000 - PD Office Complex Ent Fd 3790000 - Miscellaneous Revenue - 15,000 15,000 5200000 - Desert Willow Golf Course 3799900 - Misc Revenue-Others - 12,000 12,000 7030000 - RDA Successor Agency 3171000 - Tax Increment-Consolidated - 23,797,450 23,797,450 7030000 - RDA Successor Agency 3611400 - Int-On Inv Trustee Sp/Esc - 10,000 10,000 8710000 - Palm Desert Housing Auth 3611400 - Int-On Inv Trustee Sp/Esc 20,000 445,000 465,000 8730000 - Housing Asset Fund 3611400 - Int-On Inv Trustee Sp/Esc - 987,828 987,828 8730000 - Housing Asset Fund 3611500 - Int-Int Fr Loan/Notes Rec - 500 500 25,210,948 OTHER FUNDS Page 792 of 1128 City of Palm Desert 2023-24 Mid-Year Budget Adjustments Page 7 of 8 Original Budget Mid-Year Adjustment Request Revised Budget Request 2114311 - Public Works -Street Resurfac 4332000 - Repair & Maintenance Streets 4,535,406 3,420,491 7,955,897 2134317 - Road Safety Improvements 5000908 - Road Safety Improvements 2,091,361 721,735 2,813,096 2134565 - Neighborhood Traffic Control 5000909 - Haystack Traffic Calming 940,211 668,665 1,608,876 2204649 - Palma Village Park 4400100 - Capital Project 212,000 100,000 312,000 2204800 - Other Classifications -Contrib 625,920 541,974 1,167,894 2304220 - Public Safety - Fire Services 4331000 - R/M-Buildings 326,141 (10,000) 316,141 2304220 - Public Safety - Fire Services 4351000 - Utilities-Water 10,000 5,000 15,000 2304220 - Public Safety - Fire Services 4351200 - Utilities-Gas 5,000 5,000 10,000 2364195 - General Government - Administr 4219000 - Supplies-Other 55,000 8,000 63,000 2364195 - General Government - Administr 42190000 55,000 8,000 63,000 2384195 - General Government - Administr 4390301 - Rideshare 1,000 1,000 2,000 2384515 - HW- Air Quality Management 4363000 - Dues 55,000 10,000 65,000 2424549 - HW- Aquatic Facility 4219000 - Supplies-Other 20,000 5,000 25,000 2424549 - HW- Aquatic Facility 4331100 - Replacement Expenditures 15,000 (5,000) 10,000 2424549 - HW- Aquatic Facility 4331101 - Contracted Pool Maintenance 258,582 (30,000) 228,582 2424549 - HW- Aquatic Facility 4351000 - Utilities-Water 40,000 (10,000) 30,000 2424549 - HW- Aquatic Facility 4351400 - Utilities-Electric 140,000 40,000 180,000 2524662 - Library Services 4112100 - Ins Prem - Health 150,000 145,870 295,870 2714491 - CD - Promotion Benefit AD 4321500 - Other Advertising 248,500 40,000 288,500 2714491 - CD - Promotion Benefit AD 4321500 - Other Advertising 248,500 40,000 288,500 2724374 - PW - Landscape & Lighting Dist 4351400 - Utilities-Electric 3,500 1,100 4,600 2734681 - CR- Landscape/Lght-Subzone B 4351400 - Utilities-Electric 966 700 1,666 2754683 - CR-Landscape/Lght-Subzone D 4332100 - Repair Maintenance 2,000 500 2,500 2764374 - Landscape & Light-Haystack&Cyn 4309500 - Prof-Palm Tree Trimming 18,000 1,000 19,000 2764374 - Landscape & Light-Haystack&Cyn 4332100 - Repair Maintenance 16,000 4,000 20,000 2774373 - PW - Parking Lot Improvements 4309103 - Prof-Parking Lot Sweeping 6,300 1,000 7,300 2864374 - Landscape & Light Crest Z15 4309500 - Prof-Palm Tree Trimming 1,638 250 1,888 4004430 - Economic Development Project 5000912 - Lupine Plaza 1,026,115 436,708 1,462,823 4204370 - Public Works - Drainage 5000454 - Haystack Channel Rehab 3,465,315 100,000 3,565,315 4254430 - Community Development - Busine 4369603 - CAM-SEARS BUILDING - 36,847 36,847 4254430 - Community Development - Busine 4400100 - Capital Project - 15,000 15,000 4504161 - General Government - R/M-City 4400100 - Capital Project 1,870,106 192,474 2,062,580 5304331 - Public Works -Auto Fleet/Equip 4344000 - Annual Lease Payment 210,223 8,718 218,941 7034121 - General Government - Legal Spe 4301500 - Prof - Legal - 50,000 50,000 7034121 - General Government - Legal Spe 4374000 - Damage Settle/Deductible 2,188,208 139,674 2,327,882 7034195 - General Government - Administr 4302000 - Prof-Accounting/Auditing 3,590 15,000 18,590 7034195 - General Government - Administr 4309000 - Prof - Other - 729,035 729,035 7034195 - General Government - Administr 4602300 - Debt Service 22 07M - 1,639,631 1,639,631 7034195 - General Government - Administr 4605300 - Debt Service 52.390M - 5,474,875 5,474,875 7034195 - General Government - Administr 4605400 - Debt Service 140.130M - 12,052,400 12,052,400 7034195 - General Government - Administr 4605500 - Debt Service 7.365M - 681,144 681,144 7034627 - Culture/Recreation - Rda Proje 4400100 - Capital Project - 113,500 113,500 8704195 - General Government - Administr 4100100 - Salaries-Full Time 308,112 25,437 333,549 8704195 - General Government - Administr 4111500 - Retirement Contribution 57,371 (13,270) 44,101 8704195 - General Government - Administr 4111600 - Medicare Contrb-Employer 6,292 (1,455) 4,837 8704195 - General Government - Administr 4111700 - Retiree Health 7,742 (2,033) 5,709 8704195 - General Government - Administr 4111800 - Employer 457 Contribution - 1,900 1,900 8704195 - General Government - Administr 4112000 - Ins Prem - Long Term Disab.2,145 (495) 1,650 8704195 - General Government - Administr 4112100 - Ins Prem - Health 96,379 (36,505) 59,874 8704195 - General Government - Administr 4112200 - Ins Prem-Dental/Vision 6,510 (718) 5,792 8704195 - General Government - Administr 4112400 - Ins Prem - Life 521 62 583 27,372,214 OTHER FUNDS Page 793 of 1128 City of Palm Desert 2023-24 Mid-Year Budget Adjustments Page 8 of 8 Finally, staff is also updating the staff allocation resolution in order to reflect changes made by the City Manager throughout the current fiscal year to meet City Council goals. Staff is requesting amendment to Section 1 of the resolution to facilitate such changes in a more flexible manner. Legal Review: This report has been reviewed by the City Attorney’s office. FINANCIAL IMPACT: Pursuant to the Reserve Policy, any positive general fund balance at year end must be used to replenish funds expended during the prior fiscal year. Therefore, the estimated $2.2M will be used to replenish the appropriations requests as needed throughout 2023-24 and applied to the appropriate General Fund reserve category. Attachments 1. Resolution Approving 2023-24 Midyear Budget Adjustments 2. Resolution Approving Revised Staff Allocation 3. Exhibit A to Resolution – Revised Staff Allocation REVISED GENERAL FUND REVENUE AND EXPENDITURES REVISED OTHER FUND REVENUE AND EXPENDITURES Original General Fund Revenue Budget 75,554,467 Original Other Fund Revenue Budget 72,025,944 Requested Adjustments 2,420,853 Anticipated Use of Fund Balance 74,887,091 Requested Adjustments 25,210,948 Revised General Fund Revenue 77,975,320 Revised Other Fund Revenue 172,123,983 Original General Fund Appropriations 75,353,985 Original Other Fund Appropriations 146,913,035 Requested Adjustments 381,296 Requested Adjustments 27,372,214 Revised General Fund Appropriations 75,735,281 Revised Other Fund Appropriations 174,285,249 Revised General fund Revenue Over/(Under) Expenditures 2,240,039 Revised Other fund Revenue Over/(Under) Expenditures (2,161,266) Page 794 of 1128 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING THE FISCAL YEAR 2023-24 BUDGET AS A RESULT OF MID-YEAR ADJUSTMENTS WHEREAS, as a result of a mid-year review, it is desirable to revise the FY 2023- 24 Budget; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, that the FY 2023-24 Budget is hereby revised as follows: 1. Each of the amounts shown in Exhibit A, attached hereto, in the General and Other Funds Revenue column entitled “Revised Budget Request”, are hereby accepted as the revised Estimated Revenues for the identified revenue categories. 2. Each of the amounts shown in Exhibit A, attached hereto, in the General and Other Funds Expenditure column entitled "Revised Budget Request", are hereby adjusted and appropriated to the departments, activities and projects identified therein as the revised budgets. ADOPTED ON February 15, 2024. ________ KARINA QUINTANILLA, MAYOR ATTEST: _____________ ANTHONY MEJIA, CITY CLERK CITY OF PALM DESERT, CALIFORNIA Page 795 of 1128 Resolution No. _____ Page 2 I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that Resolution No. 2022-__ is a full, true, and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Desert on _______________________, by the following vote: AYES: NOES: ABSENT: ABSTAIN: RECUSED: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on ______________, 20__. ANTHONY J. MEJIA CITY CLERK Page 796 of 1128 Resolution No. _____ Page 2 EXHIBIT A GENERAL FUND REVENUE REQUEST: GENERAL FUND EXPENDITURES REQUEST: General Fund Original Budget Midyear Adjustment Revised Midyear Budget 1104111 - General Gov - City Clerk 4100100 - Salaries-Full Time 684,341 22,568 706,909 1104130 - General Gov - City Manager 4100100 - Salaries-Full Time 954,561 117,132 1,071,693 1104134 - General Gov - Capital Projects 4100100 - Salaries-Full Time 1,199,893 (259,036) 940,857 1104150 - General Gov- Finance 4100100 - Salaries-Full Time 1,705,807 (78,706) 1,627,101 1104154 - General Gov- Human Resources 4100100 - Salaries-Full Time 433,895 31,131 465,026 1104190 - General Gov- Information Techn 4100100 - Salaries-Full Time 648,678 112,367 761,045 1104250 - Public Safety - Pw-St Light/Tr 4100100 - Salaries-Full Time 451,088 91,147 542,235 1104300 - Public Works-Administration 4100100 - Salaries-Full Time 804,888 156,052 960,940 1104310 - Public Works -Street & Mainten 4100100 - Salaries-Full Time 1,084,422 27,817 1,112,239 1104340 - Public Works -Public Bldg 4100100 - Salaries-Full Time 518,635 (146,657) 371,978 1104417 - Community Dev - Marketing 4100100 - Salaries-Full Time 476,446 109,054 585,500 GENERAL FUND Original Budget Mid-Year Adjustment Request Revised Budget Request 3133000 - Sales Tax/Meas A Sales Tx 26,623,447 (1,623,447) 25,000,000 3166000 - Business License Tax 1,300,000 (200,000) 1,100,000 3188300 - Transient Occupancy Tax 18,500,000 1,500,000 20,000,000 3199600 - Business Lic Delinq Fee 20,000 10,000 30,000 3199800 - Transient Occ Tax Delinq 20,000 (10,000) 10,000 3221100 - Building Permits 1,228,300 200,000 1,428,300 3221200 - Grading Permits 25,000 (10,000) 15,000 3221500 - ROW Encroachment Permits 150,000 (50,000) 100,000 3221700 - Miscellaneous Permits - 800 800 3221800 - Business Regulatory Perm 22,500 (10,000) 12,500 3365600 - Motor Veh In Lieu Fee 24,000 26,000 50,000 3411300 - Zoning Fees 40,000 10,000 50,000 3411400 - Plan Check Fees 307,768 100,000 407,768 3411500 - Sale Of Map/Plan/Public 5,000 (2,500) 2,500 3424500 - Nuisance Abatement Tax 20,000 (10,000) 10,000 3511100 - Vehicle Code Fines Non-Mv 35,000 (10,000) 25,000 3611000 - Interest Income 500,000 2,500,000 3,000,000 2,420,853 Page 797 of 1128 Resolution No. _____ Page 2 1104420 - Community Dev- Building&Safety 4100100 - Salaries-Full Time 774,876 (35,726) 739,150 1104421 - Comm Dev - Permit Center 4100100 - Salaries-Full Time 385,302 (20,470) 364,832 1104422 - B & Safety - Code Enforcement 4100100 - Salaries-Full Time 489,275 92,501 581,776 1104430 - Comm Dev -Economic Development 4100100 - Salaries-Full Time 972,374 (80,865) 891,509 1104470 - Comm Dev - Planning/Comm Devel 4100100 - Salaries-Full Time 1,130,335 57,793 1,188,128 1104614 - Culture/Rec - Landscaping 4100100 - Salaries-Full Time 526,544 74,971 601,515 1104130 - General Gov - City Manager 4100200 - Salaries-Overtime - 500 500 1104150 - General Gov- Finance 4100200 - Salaries-Overtime 1,000 5,000 6,000 1104190 - General Gov- Information Techn 4100200 - Salaries-Overtime 10,000 2,000 12,000 1104250 - Public Safety - Pw-St Light/Tr 4100200 - Salaries-Overtime 1,000 9,000 10,000 1104310 - Public Works -Street & Mainten 4100200 - Salaries-Overtime 20,000 40,000 60,000 1104340 - Public Works -Public Bldg 4100200 - Salaries-Overtime 10,000 10,000 20,000 1104420 - Community Dev- Building&Safety 4100200 - Salaries-Overtime 1,000 5,000 6,000 1104421 - Comm Dev - Permit Center 4100200 - Salaries-Overtime 500 500 1,000 1104422 - B & Safety - Code Enforcement 4100200 - Salaries-Overtime - 10,000 10,000 1104430 - Comm Dev -Economic Development 4100200 - Salaries-Overtime 500 250 750 1104614 - Culture/Rec - Landscaping 4100200 - Salaries-Overtime 3,000 10,000 13,000 1104110 - General Gov - City Council 4101000 - Meeting Compensation 138,768 (1,982) 136,786 1104159 - General Gov - General Services 4101500 - Retirement Contribution 2,805,167 (125,000) 2,680,167 1104110 - General Gov - City Council 4111500 - Retirement Contribution 18,438 (262) 18,176 1104111 - General Gov - City Clerk 4111500 - Retirement Contribution 90,501 2,979 93,480 1104130 - General Gov - City Manager 4111500 - Retirement Contribution 126,146 15,464 141,610 1104134 - General Gov - Capital Projects 4111500 - Retirement Contribution 158,626 (34,241) 124,385 1104150 - General Gov- Finance 4111500 - Retirement Contribution 225,575 (10,414) 215,161 1104154 - General Gov- Human Resources 4111500 - Retirement Contribution 57,370 4,110 61,480 1104190 - General Gov- Information Techn 4111500 - Retirement Contribution 85,746 14,929 100,675 1104250 - Public Safety - Pw-St Light/Tr 4111500 - Retirement Contribution 59,640 12,060 71,700 1104300 - Public Works-Administration 4111500 - Retirement Contribution 106,413 20,623 127,036 Page 798 of 1128 Resolution No. _____ Page 2 1104310 - Public Works -Street & Mainten 4111500 - Retirement Contribution 143,456 3,674 147,130 1104340 - Public Works -Public Bldg 4111500 - Retirement Contribution 68,580 (19,380) 49,200 1104417 - Community Dev - Marketing 4111500 - Retirement Contribution 63,011 14,419 77,430 1104420 - Community Dev- Building&Safety 4111500 - Retirement Contribution 102,476 (4,740) 97,736 1104421 - Comm Dev - Permit Center 4111500 - Retirement Contribution 50,980 (2,702) 48,278 1104422 - B & Safety - Code Enforcement 4111500 - Retirement Contribution 64,728 12,234 76,962 1104430 - Comm Dev -Economic Development 4111500 - Retirement Contribution 128,570 (10,698) 117,872 1104470 - Comm Dev - Planning/Comm Devel 4111500 - Retirement Contribution 149,445 7,652 157,097 1104614 - Culture/Rec - Landscaping 4111500 - Retirement Contribution 69,624 9,920 79,544 1104110 - General Gov - City Council 4111600 - Medicare Contrb- Employer 2,012 (27) 1,985 1104111 - General Gov - City Clerk 4111600 - Medicare Contrb- Employer 9,923 327 10,250 1104130 - General Gov - City Manager 4111600 - Medicare Contrb- Employer 13,841 1,699 15,540 1104134 - General Gov - Capital Projects 4111600 - Medicare Contrb- Employer 17,399 (3,757) 13,642 1104150 - General Gov- Finance 4111600 - Medicare Contrb- Employer 24,735 (1,142) 23,593 1104154 - General Gov- Human Resources 4111600 - Medicare Contrb- Employer 6,291 452 6,743 1104190 - General Gov- Information Techn 4111600 - Medicare Contrb- Employer 9,406 1,634 11,040 1104250 - Public Safety - Pw-St Light/Tr 4111600 - Medicare Contrb- Employer 6,541 1,322 7,863 1104300 - Public Works-Administration 4111600 - Medicare Contrb- Employer 11,671 2,263 13,934 1104310 - Public Works -Street & Mainten 4111600 - Medicare Contrb- Employer 15,724 404 16,128 1104340 - Public Works -Public Bldg 4111600 - Medicare Contrb- Employer 7,520 (2,125) 5,395 1104417 - Community Dev - Marketing 4111600 - Medicare Contrb- Employer 6,909 1,591 8,500 1104420 - Community Dev- Building&Safety 4111600 - Medicare Contrb- Employer 11,236 (518) 10,718 1104421 - Comm Dev - Permit Center 4111600 - Medicare Contrb- Employer 5,587 (297) 5,290 1104422 - B & Safety - Code Enforcement 4111600 - Medicare Contrb- Employer 7,095 1,341 8,436 1104430 - Comm Dev -Economic Development 4111600 - Medicare Contrb- Employer 14,100 (1,173) 12,927 1104470 - Comm Dev - Planning/Comm Devel 4111600 - Medicare Contrb- Employer 16,390 837 17,227 1104614 - Culture/Rec - Landscaping 4111600 - Medicare Contrb- Employer 7,635 1,087 8,722 1104111 - General Gov - City Clerk 4111700 - Retiree Health 10,898 2,417 13,315 Page 799 of 1128 Resolution No. _____ Page 2 1104130 - General Gov - City Manager 4111700 - Retiree Health 21,580 1,625 23,205 1104134 - General Gov - Capital Projects 4111700 - Retiree Health 15,260 5,060 20,320 1104150 - General Gov- Finance 4111700 - Retiree Health 30,611 4,629 35,240 1104154 - General Gov- Human Resources 4111700 - Retiree Health 7,742 6,209 13,951 1104190 - General Gov- Information Techn 4111700 - Retiree Health 982 2,618 3,600 1104250 - Public Safety - Pw-St Light/Tr 4111700 - Retiree Health 1,257 2,483 3,740 1104300 - Public Works-Administration 4111700 - Retiree Health 5,879 3,908 9,787 1104310 - Public Works -Street & Mainten 4111700 - Retiree Health 4,150 (1,163) 2,987 1104340 - Public Works -Public Bldg 4111700 - Retiree Health 1,053 198 1,251 1104417 - Community Dev - Marketing 4111700 - Retiree Health 8,783 6,521 15,304 1104420 - Community Dev- Building&Safety 4111700 - Retiree Health 8,587 466 9,053 1104421 - Comm Dev - Permit Center 4111700 - Retiree Health 7,943 (2,535) 5,408 1104422 - B & Safety - Code Enforcement 4111700 - Retiree Health 4,298 3,749 8,047 1104430 - Comm Dev -Economic Development 4111700 - Retiree Health 12,080 (2,565) 9,515 1104470 - Comm Dev - Planning/Comm Devel 4111700 - Retiree Health 16,632 6,557 23,189 1104614 - Culture/Rec - Landscaping 4111700 - Retiree Health 4,051 1,507 5,558 1104111 - General Gov - City Clerk 4111800 - Employer 457 Contribution - 1,200 1,200 1104130 - General Gov - City Manager 4111800 - Employer 457 Contribution - 3,250 3,250 1104134 - General Gov - Capital Projects 4111800 - Employer 457 Contribution - 5,650 5,650 1104150 - General Gov- Finance 4111800 - Employer 457 Contribution - 10,500 10,500 1104154 - General Gov- Human Resources 4111800 - Employer 457 Contribution - 2,700 2,700 1104190 - General Gov- Information Techn 4111800 - Employer 457 Contribution - 4,800 4,800 1104250 - Public Safety - Pw-St Light/Tr 4111800 - Employer 457 Contribution - 6,550 6,550 1104300 - Public Works-Administration 4111800 - Employer 457 Contribution - 12,000 12,000 1104310 - Public Works -Street & Mainten 4111800 - Employer 457 Contribution - 6,300 6,300 1104340 - Public Works -Public Bldg 4111800 - Employer 457 Contribution - 3,600 3,600 1104417 - Community Dev - Marketing 4111800 - Employer 457 Contribution - 5,300 5,300 1104420 - Community Dev- Building&Safety 4111800 - Employer 457 Contribution - 4,800 4,800 Page 800 of 1128 Resolution No. _____ Page 2 1104421 - Comm Dev - Permit Center 4111800 - Employer 457 Contribution - 4,600 4,600 1104422 - B & Safety - Code Enforcement 4111800 - Employer 457 Contribution - 5,600 5,600 1104430 - Comm Dev -Economic Development 4111800 - Employer 457 Contribution - 9,200 9,200 1104470 - Comm Dev - Planning/Comm Devel 4111800 - Employer 457 Contribution - 8,200 8,200 1104614 - Culture/Rec - Landscaping 4111800 - Employer 457 Contribution - 4,600 4,600 1104111 - General Gov - City Clerk 4112000 - Ins Prem - Long Term Disab. 3,383 112 3,495 1104130 - General Gov - City Manager 4112000 - Ins Prem - Long Term Disab. 4,720 580 5,300 1104134 - General Gov - Capital Projects 4112000 - Ins Prem - Long Term Disab. 5,932 (1,281) 4,651 1104150 - General Gov- Finance 4112000 - Ins Prem - Long Term Disab. 8,435 (390) 8,045 1104154 - General Gov- Human Resources 4112000 - Ins Prem - Long Term Disab. 2,145 155 2,300 1104190 - General Gov- Information Techn 4112000 - Ins Prem - Long Term Disab. 3,207 558 3,765 1104250 - Public Safety - Pw-St Light/Tr 4112000 - Ins Prem - Long Term Disab. 2,230 451 2,681 1104300 - Public Works-Administration 4112000 - Ins Prem - Long Term Disab. 3,980 771 4,751 1104310 - Public Works -Street & Mainten 4112000 - Ins Prem - Long Term Disab. 5,362 138 5,500 1104340 - Public Works -Public Bldg 4112000 - Ins Prem - Long Term Disab. 2,565 (725) 1,840 1104417 - Community Dev - Marketing 4112000 - Ins Prem - Long Term Disab. 2,356 544 2,900 1104420 - Community Dev- Building&Safety 4112000 - Ins Prem - Long Term Disab. 3,831 (177) 3,654 1104421 - Comm Dev - Permit Center 4112000 - Ins Prem - Long Term Disab. 1,905 (101) 1,804 1104422 - B & Safety - Code Enforcement 4112000 - Ins Prem - Long Term Disab. 2,419 457 2,876 1104430 - Comm Dev -Economic Development 4112000 - Ins Prem - Long Term Disab. 4,808 (398) 4,410 1104470 - Comm Dev - Planning/Comm Devel 4112000 - Ins Prem - Long Term Disab. 5,589 286 5,875 1104614 - Culture/Rec - Landscaping 4112000 - Ins Prem - Long Term Disab. 2,604 370 2,974 1104110 - General Gov - City Council 4112100 - Ins Prem - Health 76,598 54,732 131,330 1104111 - General Gov - City Clerk 4112100 - Ins Prem - Health 160,117 6,729 166,846 1104130 - General Gov - City Manager 4112100 - Ins Prem - Health 162,185 (60,909) 101,276 1104134 - General Gov - Capital Projects 4112100 - Ins Prem - Health 268,127 (84,611) 183,516 1104150 - General Gov- Finance 4112100 - Ins Prem - Health 365,522 (42,247) 323,275 1104154 - General Gov- Human Resources 4112100 - Ins Prem - Health 96,379 8,808 105,187 Page 801 of 1128 Resolution No. _____ Page 2 1104190 - General Gov- Information Techn 4112100 - Ins Prem - Health 112,000 74,920 186,920 1104250 - Public Safety - Pw-St Light/Tr 4112100 - Ins Prem - Health 89,147 4,267 93,414 1104300 - Public Works-Administration 4112100 - Ins Prem - Health 169,835 23,935 193,770 1104310 - Public Works -Street & Mainten 4112100 - Ins Prem - Health 302,260 (7,174) 295,086 1104340 - Public Works -Public Bldg 4112100 - Ins Prem - Health 109,455 (39,655) 69,800 1104417 - Community Dev - Marketing 4112100 - Ins Prem - Health 75,564 47,513 123,077 1104420 - Community Dev- Building&Safety 4112100 - Ins Prem - Health 163,021 (1,838) 161,183 1104421 - Comm Dev - Permit Center 4112100 - Ins Prem - Health 89,605 30,214 119,819 1104422 - B & Safety - Code Enforcement 4112100 - Ins Prem - Health 115,643 35,749 151,392 1104430 - Comm Dev -Economic Development 4112100 - Ins Prem - Health 176,282 (24,273) 152,009 1104470 - Comm Dev - Planning/Comm Devel 4112100 - Ins Prem - Health 183,300 73,202 256,502 1104614 - Culture/Rec - Landscaping 4112100 - Ins Prem - Health 122,177 20,281 142,458 1104110 - General Gov - City Council 4112200 - Ins Prem-Dental/Vision 7,690 727 8,417 1104111 - General Gov - City Clerk 4112200 - Ins Prem-Dental/Vision 11,805 1,949 13,754 1104130 - General Gov - City Manager 4112200 - Ins Prem-Dental/Vision 8,640 (215) 8,425 1104134 - General Gov - Capital Projects 4112200 - Ins Prem-Dental/Vision 16,107 (2,626) 13,481 1104150 - General Gov- Finance 4112200 - Ins Prem-Dental/Vision 23,643 3,943 27,586 1104154 - General Gov- Human Resources 4112200 - Ins Prem-Dental/Vision 6,510 958 7,468 1104190 - General Gov- Information Techn 4112200 - Ins Prem-Dental/Vision 9,409 2,131 11,540 1104250 - Public Safety - Pw-St Light/Tr 4112200 - Ins Prem-Dental/Vision 8,691 222 8,913 1104300 - Public Works-Administration 4112200 - Ins Prem-Dental/Vision 13,986 949 14,935 1104310 - Public Works -Street & Mainten 4112200 - Ins Prem-Dental/Vision 26,294 (4,394) 21,900 1104340 - Public Works -Public Bldg 4112200 - Ins Prem-Dental/Vision 8,913 (1,446) 7,467 1104417 - Community Dev - Marketing 4112200 - Ins Prem-Dental/Vision 5,740 2,172 7,912 1104420 - Community Dev- Building&Safety 4112200 - Ins Prem-Dental/Vision 14,208 (2,170) 12,038 1104421 - Comm Dev - Permit Center 4112200 - Ins Prem-Dental/Vision 8,913 497 9,410 1104422 - B & Safety - Code Enforcement 4112200 - Ins Prem-Dental/Vision 10,590 2,172 12,762 1104430 - Comm Dev -Economic Development 4112200 - Ins Prem-Dental/Vision 14,927 (2,173) 12,754 Page 802 of 1128 Resolution No. _____ Page 2 1104470 - Comm Dev - Planning/Comm Devel 4112200 - Ins Prem-Dental/Vision 17,330 4,620 21,950 1104614 - Culture/Rec - Landscaping 4112200 - Ins Prem-Dental/Vision 8,417 950 9,367 1104111 - General Gov - City Clerk 4112400 - Ins Prem - Life 1,156 35 1,191 1104130 - General Gov - City Manager 4112400 - Ins Prem - Life 1,610 196 1,806 1104134 - General Gov - Capital Projects 4112400 - Ins Prem - Life 2,025 (437) 1,588 1104150 - General Gov- Finance 4112400 - Ins Prem - Life 2,883 (133) 2,750 1104154 - General Gov- Human Resources 4112400 - Ins Prem - Life 700 85 785 1104190 - General Gov- Information Techn 4112400 - Ins Prem - Life 1,096 189 1,285 1104250 - Public Safety - Pw-St Light/Tr 4112400 - Ins Prem - Life 761 153 914 1104300 - Public Works-Administration 4112400 - Ins Prem - Life 1,360 261 1,621 1104310 - Public Works -Street & Mainten 4112400 - Ins Prem - Life 1,837 46 1,883 1104340 - Public Works -Public Bldg 4112400 - Ins Prem - Life 880 (254) 626 1104417 - Community Dev - Marketing 4112400 - Ins Prem - Life 807 183 990 1104420 - Community Dev- Building&Safety 4112400 - Ins Prem - Life 1,308 (58) 1,250 1104421 - Comm Dev - Permit Center 4112400 - Ins Prem - Life 654 (37) 617 1104422 - B & Safety - Code Enforcement 4112400 - Ins Prem - Life 829 155 984 1104430 - Comm Dev -Economic Development 4112400 - Ins Prem - Life 1,640 (136) 1,504 1104470 - Comm Dev - Planning/Comm Devel 4112400 - Ins Prem - Life 1,907 97 2,004 1104614 - Culture/Rec - Landscaping 4112400 - Ins Prem - Life 889 126 1,015 1104300 - Public Works-Administration 4211000 - Office Supplies 7,500 2,500 10,000 1104250 - Public Safety - Pw-St Light/Tr 4219000 - Supplies-Other 5,000 5,000 10,000 1104330 - Public Works - Corp. Yard 4219000 - Supplies-Other 14,500 2,500 17,000 1104340 - Public Works -Public Bldg 4219000 - Supplies-Other 44,500 1,500 46,000 1104610 - Civic Center Park 4219000 - Supplies-Other 25,000 (5,000) 20,000 1104611 - Park Maintenance 4219000 - Supplies-Other 33,000 (5,000) 28,000 1104614 - Culture/Rec - Landscaping 4219000 - Supplies-Other 14,500 (5,000) 9,500 1104300 - Public Works-Administration 4300300 - Prof-Temporary Part- Time 30,000 25,000 55,000 1104300 - Public Works-Administration 4301000 - Prof-Architectural/Eng 337,278 (79,000) 258,278 Page 803 of 1128 Resolution No. _____ Page 2 1104416 - Community Dev- Special Events 4306101 - City Produced Events 548,500 10,000 558,500 1104114 - General Gov - Elections 4309000 - Prof - Other 301,100 (35,000) 266,100 1104130 - General Gov - City Manager 4309000 - Prof - Other 21,700 91,375 113,075 1104159 - General Gov - General Services 4309000 - Prof - Other 2,027,312 (415,990) 1,611,322 1104230 - Public Safety - Animal Regulat 4309000 - Prof - Other 360,000 20,000 380,000 1104250 - Public Safety - Pw-St Light/Tr 4309000 - Prof - Other 125,000 (50,000) 75,000 1104340 - Public Works -Public Bldg 4309000 - Prof - Other 26,000 9,000 35,000 1104421 - Comm Dev - Permit Center 4309000 - Prof - Other 32,000 24,000 56,000 1104430 - Comm Dev -Economic Development 4309000 - Prof - Other 757,321 53,762 811,083 1104470 - Comm Dev - Planning/Comm Devel 4309000 - Prof - Other 137,907 250,000 387,907 1104159 - General Gov - General Services 4309300 - Prof-Other Admn Expenses 500,000 (250,000) 250,000 1104340 - Public Works -Public Bldg 4311500 - Mileage Reimbursement 500 500 1,000 1104150 - General Gov- Finance 4312000 - Conf- Seminars- Workshops 12,500 7,500 20,000 1104422 - B & Safety - Code Enforcement 4312000 - Conf- Seminars- Workshops 15,000 (9,000) 6,000 1104430 - Comm Dev -Economic Development 4312000 - Conf- Seminars- Workshops 20,000 5,000 25,000 1104614 - Culture/Rec - Landscaping 4312000 - Conf- Seminars- Workshops 31,750 (5,000) 26,750 1104430 - Comm Dev -Economic Development 4312100 - Committee Conferences 5,000 (5,000) - 1104154 - General Gov- Human Resources 4312101 - City Wide Training 122,340 35,000 157,340 1104150 - General Gov- Finance 4312500 - Local Meetings 1,500 (750) 750 1104417 - Community Dev - Marketing 4312500 - Local Meetings 500 5,000 5,500 1104344 - Public Works - Portola Comm 4331000 - R/M-Buildings 48,500 (8,500) 40,000 1104610 - Civic Center Park 4331000 - R/M-Buildings 64,200 25,000 89,200 1104611 - Park Maintenance 4331000 - R/M-Buildings 94,500 (5,000) 89,500 1104610 - Civic Center Park 4332001 - RM-Landscaping Services 708,467 (50,000) 658,467 1104611 - Park Maintenance 4332001 - RM-Landscaping Services 690,040 25,000 715,040 1104610 - Civic Center Park 4332100 - Repair Maintenance 161,500 (10,000) 151,500 1104614 - Culture/Rec - Landscaping 4332501 - R/M-Others 35,000 5,000 40,000 1104331 - Public Works -Auto Fleet/Equip 4334000 - R/M-Motor Vehicles- Fleet 170,000 25,000 195,000 Page 804 of 1128 Resolution No. _____ Page 2 1104614 - Culture/Rec - Landscaping 4337001 - R/M-Medians 1,732,888 (40,000) 1,692,888 1104610 - Civic Center Park 4337100 - Tri-Cities Sport Facility 176,691 (10,000) 166,691 1104330 - Public Works - Corp. Yard 4351000 - Utilities-Water 6,500 3,500 10,000 1104340 - Public Works -Public Bldg 4351000 - Utilities-Water 5,500 4,500 10,000 1104344 - Public Works - Portola Comm 4351000 - Utilities-Water 5,000 2,500 7,500 1104250 - Public Safety - Pw-St Light/Tr 4351400 - Utilities-Electric 160,000 45,000 205,000 1104330 - Public Works - Corp. Yard 4351400 - Utilities-Electric 40,000 5,000 45,000 1104344 - Public Works - Portola Comm 4351400 - Utilities-Electric 20,000 6,000 26,000 1104610 - Civic Center Park 4351400 - Utilities-Electric 130,000 65,000 195,000 1104611 - Park Maintenance 4351400 - Utilities-Electric 70,000 (25,000) 45,000 1104614 - Culture/Rec - Landscaping 4351400 - Utilities-Electric 35,000 15,000 50,000 1104150 - General Gov- Finance 4361000 - Printing / Duplicating 5,000 (4,000) 1,000 1104159 - General Gov - General Services 4361000 - Printing / Duplicating 4,000 (2,750) 1,250 1104190 - General Gov- Information Techn 4362001 - Software License Fee 1,348,029 250,000 1,598,029 1104159 - General Gov - General Services 4364800 - Sb2557/County Admin Fees 70,000 (5,000) 65,000 1104192 - General Gov - Insurance 4371000 - Liab & Property Damage 1,144,000 (154,000) 990,000 1104800 - Other Class - Outside Agency 4388500 - Cntrb-Museum 40,000 40,000 80,000 1104614 - Culture/Rec - Landscaping 4390500 - Arbor Day 1,500 1,500 3,000 1104614 - Culture/Rec - Landscaping 4391001 - Holiday Decorations 96,400 (10,000) 86,400 1104154 - General Gov- Human Resources 4391500 - Employee Safety 2,500 10,000 12,500 1104614 - Culture/Rec - Landscaping 4392101 - Entrada del Paseo 216,614 5,000 221,614 1104159 - General Gov - General Services 4404000 - Cap-Office Equipment 50,000 (45,000) 5,000 1104331 - Public Works -Auto Fleet/Equip 4404000 - Cap-Office Equipment 25,083 3,500 28,583 1104470 - Comm Dev - Planning/Comm Devel 4404000 - Cap-Office Equipment 20,000 (15,000) 5,000 381,296 Page 805 of 1128 Resolution No. _____ Page 2 OTHER FUND REVENUE REQUEST: OTHER FUND EXPENDITURES REQUEST: REVISED GENERAL FUND REVENUE AND EXPENDITURES General Fund Revenue 87,591,508 General Fund Appropriation 2023-24 85,351,469 Revised General Fund Revenue Over/(Under) Expenditures 2,240,039 Original Budget Mid-Year Adjustment Request Revised Budget Request 2340000 - Traffic Signals 3122500 - Signalization Fees 20,000 16,000 36,000 2370000 - Energy Independence Loan 3611500 - Int-Int Fr Loan/Notes Rec - 1,200 1,200 2430000 - Cannabis Compliance Fund 3184200 - Cannabis Tax Sales 1,200,000 (300,000) 900,000 2430000 - Cannabis Compliance Fund 3184201 - Cannabis Tax Manufacturing 2,000 23,000 25,000 2430000 - Cannabis Compliance Fund 3184202 - Cannabis Tax Cultivation 8,000 500 8,500 2430000 - Cannabis Compliance Fund 3199900 - Cannabis Tax Delinq - 1,200 1,200 2710000 - El Paseo Assessm District 3553000 - Special Assessment Levied - 161,770 161,770 2770000 - Zone #1 Prs.Plaza/Parking 3553000 - Special Assessment Levied - 38,000 38,000 4250000 - Economic Development Proj 3790000 - Miscellaneous Revenue - 1,500 1,500 5100000 - PD Office Complex Ent Fd 3790000 - Miscellaneous Revenue - 15,000 15,000 5200000 - Desert Willow Golf Course 3799900 - Misc Revenue-Others - 12,000 12,000 7030000 - RDA Successor Agency 3171000 - Tax Increment-Consolidated - 23,797,450 23,797,450 7030000 - RDA Successor Agency 3611400 - Int-On Inv Trustee Sp/Esc - 10,000 10,000 8710000 - Palm Desert Housing Auth 3611400 - Int-On Inv Trustee Sp/Esc 20,000 445,000 465,000 8730000 - Housing Asset Fund 3611400 - Int-On Inv Trustee Sp/Esc - 987,828 987,828 8730000 - Housing Asset Fund 3611500 - Int-Int Fr Loan/Notes Rec - 500 500 25,210,948 OTHER FUNDS Page 806 of 1128 Resolution No. _____ Page 2 Original Budget Mid-Year Adjustment Request Revised Budget Request 2114311 - Public Works -Street Resurfac 4332000 - Repair & Maintenance Streets 4,535,406 3,420,491 7,955,897 2134317 - Road Safety Improvements 5000908 - Road Safety Improvements 2,091,361 721,735 2,813,096 2134565 - Neighborhood Traffic Control 5000909 - Haystack Traffic Calming 940,211 668,665 1,608,876 2204649 - Palma Village Park 4400100 - Capital Project 212,000 100,000 312,000 2204800 - Other Classifications -Contrib 625,920 541,974 1,167,894 2304220 - Public Safety - Fire Services 4331000 - R/M-Buildings 326,141 (10,000) 316,141 2304220 - Public Safety - Fire Services 4351000 - Utilities-Water 10,000 5,000 15,000 2304220 - Public Safety - Fire Services 4351200 - Utilities-Gas 5,000 5,000 10,000 2364195 - General Government - Administr 4219000 - Supplies-Other 55,000 8,000 63,000 2364195 - General Government - Administr 42190000 55,000 8,000 63,000 2384195 - General Government - Administr 4390301 - Rideshare 1,000 1,000 2,000 2384515 - HW- Air Quality Management 4363000 - Dues 55,000 10,000 65,000 2424549 - HW- Aquatic Facility 4219000 - Supplies-Other 20,000 5,000 25,000 2424549 - HW- Aquatic Facility 4331100 - Replacement Expenditures 15,000 (5,000) 10,000 2424549 - HW- Aquatic Facility 4331101 - Contracted Pool Maintenance 258,582 (30,000) 228,582 2424549 - HW- Aquatic Facility 4351000 - Utilities-Water 40,000 (10,000) 30,000 2424549 - HW- Aquatic Facility 4351400 - Utilities-Electric 140,000 40,000 180,000 2524662 - Library Services 4112100 - Ins Prem - Health 150,000 145,870 295,870 2714491 - CD - Promotion Benefit AD 4321500 - Other Advertising 248,500 40,000 288,500 2714491 - CD - Promotion Benefit AD 4321500 - Other Advertising 248,500 40,000 288,500 2724374 - PW - Landscape & Lighting Dist 4351400 - Utilities-Electric 3,500 1,100 4,600 2734681 - CR- Landscape/Lght-Subzone B 4351400 - Utilities-Electric 966 700 1,666 2754683 - CR-Landscape/Lght-Subzone D 4332100 - Repair Maintenance 2,000 500 2,500 2764374 - Landscape & Light-Haystack&Cyn 4309500 - Prof-Palm Tree Trimming 18,000 1,000 19,000 2764374 - Landscape & Light-Haystack&Cyn 4332100 - Repair Maintenance 16,000 4,000 20,000 2774373 - PW - Parking Lot Improvements 4309103 - Prof-Parking Lot Sweeping 6,300 1,000 7,300 2864374 - Landscape & Light Crest Z15 4309500 - Prof-Palm Tree Trimming 1,638 250 1,888 4004430 - Economic Development Project 5000912 - Lupine Plaza 1,026,115 436,708 1,462,823 4204370 - Public Works - Drainage 5000454 - Haystack Channel Rehab 3,465,315 100,000 3,565,315 4254430 - Community Development - Busine 4369603 - CAM-SEARS BUILDING - 36,847 36,847 4254430 - Community Development - Busine 4400100 - Capital Project - 15,000 15,000 4504161 - General Government - R/M-City 4400100 - Capital Project 1,870,106 192,474 2,062,580 5304331 - Public Works -Auto Fleet/Equip 4344000 - Annual Lease Payment 210,223 8,718 218,941 7034121 - General Government - Legal Spe 4301500 - Prof - Legal - 50,000 50,000 7034121 - General Government - Legal Spe 4374000 - Damage Settle/Deductible 2,188,208 139,674 2,327,882 7034195 - General Government - Administr 4302000 - Prof-Accounting/Auditing 3,590 15,000 18,590 7034195 - General Government - Administr 4309000 - Prof - Other - 729,035 729,035 7034195 - General Government - Administr 4602300 - Debt Service 22 07M - 1,639,631 1,639,631 7034195 - General Government - Administr 4605300 - Debt Service 52.390M - 5,474,875 5,474,875 7034195 - General Government - Administr 4605400 - Debt Service 140.130M - 12,052,400 12,052,400 7034195 - General Government - Administr 4605500 - Debt Service 7.365M - 681,144 681,144 7034627 - Culture/Recreation - Rda Proje 4400100 - Capital Project - 113,500 113,500 8704195 - General Government - Administr 4100100 - Salaries-Full Time 308,112 25,437 333,549 8704195 - General Government - Administr 4111500 - Retirement Contribution 57,371 (13,270) 44,101 8704195 - General Government - Administr 4111600 - Medicare Contrb-Employer 6,292 (1,455) 4,837 8704195 - General Government - Administr 4111700 - Retiree Health 7,742 (2,033) 5,709 8704195 - General Government - Administr 4111800 - Employer 457 Contribution - 1,900 1,900 8704195 - General Government - Administr 4112000 - Ins Prem - Long Term Disab.2,145 (495) 1,650 8704195 - General Government - Administr 4112100 - Ins Prem - Health 96,379 (36,505) 59,874 8704195 - General Government - Administr 4112200 - Ins Prem-Dental/Vision 6,510 (718) 5,792 8704195 - General Government - Administr 4112400 - Ins Prem - Life 521 62 583 27,372,214 OTHER FUNDS Page 807 of 1128 Resolution No. _____ Page 2 Original Budget Mid-Year Adjustment Needed Revised Mid- Year Budget Appropriations from Reserve Thru 1/25/24 Total 2023/24 Appropriations Other Funds Revenue 72,025,944 25,210,948 97,236,892 97,236,892 Anticipated Use of Fund Balance 74,887,091 74,887,091 74,887,091 Other Funds Appropriations 146,913,035 27,372,214 174,285,249 174,285,249 Revised Other Fund Revenu Over/(Under) Expenditures - (2,161,266) (2,161,266) - (2,161,266) REVISED GENERAL FUND REVENUE AND EXPENDITURES REVISED OTHER FUND REVENUE AND EXPENDITURES Original General Fund Revenue Budget 75,554,467 Original Other Fund Revenue Budget 72,025,944 Requested Adjustments 2,420,853 Anticipated Use of Fund Balance 74,887,091 Requested Adjustments 25,210,948 Revised General Fund Revenue 77,975,320 Revised Other Fund Revenue 172,123,983 Original General Fund Appropriations 75,353,985 Original Other Fund Appropriations 146,913,035 Requested Adjustments 381,296 Requested Adjustments 27,372,214 Revised General Fund Appropriations 75,735,281 Revised Other Fund Appropriations 174,285,249 Revised General fund Revenue Over/(Under) Expenditures 2,240,039 Revised Other fund Revenue Over/(Under) Expenditures (2,161,266) Page 808 of 1128 RESOLUTION NO. 2024 - 006 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ADOPTING AUTHORIZED CLASSIFICATIONS AND ALLOCATED POSITIONS INCLUDED HEREIN ATTACHED AS EXHIBIT “A” AND RESCINDING RESOLUTION NO. 2023-022 WHEREAS, the City of Palm Desert identifies employees by classifications and groups for the purpose of salary and benefit administration ; and WHEREAS, the City of Palm Desert has met and conferred in good faith with the Palm Desert Employees Organization (PDEO) in accordance with the Meyers -Milias- Brown Act and the City’s Employer-Employee Relations Ordinance; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PALM DESERT AS FOLLOWS: SECTION I - ALLOCATED POSITIONS AND AUTHORIZED CLASSIFICATIONS The City of Palm Desert’s Personnel System, Section 2.52 of the Palm Desert Municipal Code prescribes specific terms for appointment and te nure of all City employees. Exhibit A contains the tables of salary ranges that will be retroactively effective to July 1, 2023. The City Manager is annually authorized to modify the Allocated Classifications, Positions and Salary Schedule during each fiscal year that he determines are reasonably necessary or appropriate for business necessity including, without limitation, the implementation of title and responsibility changes, any minimum wage laws, use of over-hires for training, limited term student internships and modification of vacant positions in so far as such modifications do not exceed the adopted 2023-24 budget. Such modifications have been included in the resolution and accompanying allocated positions; however, it may be necessary to modify them again based on the business necessity of the City. Changes to the allocation will be updated as necessary by the City Manager, and brought back to City Council at year-end for ratification. SECTION II – PERSONNEL GROUPS/DESIGNATIONS The City assigns classifications to designated groups for the purposes of defining exempt status, benefits allocation and purchasing authority. These classifications, (listed in the table below), are categorized as follows: Title Exempt Group Executive Contract At Will City Manager X Yes Yes Assistant City Manager X Yes Yes City Clerk X Yes Yes Page 809 of 1128 Resolution No. 2024-006 Page 2 City Engineer X Yes Yes Director of Capital Projects X Yes Yes Director of Development Services X Yes Yes Director of Economic Development X Yes Yes Director of Finance/City Treasurer X Yes Yes Director of Library Services X Yes Yes Director of Public Works A No No Accounting Manager B No No Accounting Supervisor B No No Assistant Building Official B No No Assistant Director of Library Services B No No Assistant Planner B No No Assistant City Clerk B No No Associate Planner I/II B No No Business Operations Manager B No No Capital Projects Manager B No No Chief Building Official B No No Code Compliance Supervisor B No No Communications Analyst B No No Community Relations Supervisor B No No Community Services Manager B No No Deputy Director of Development Services B No No Deputy Director of Economic Development B No No Deputy Director of Finance B No No Deputy Director of Public Works B No No Economic Development Coordinator B No No Finance Supervisor B No No Homeless and Support Services Manager B No No Housing Manager B No No Human Resources Manager B No No Information Systems Manager B No No Landscape Supervisor B No No Library Manager B No No Management Analyst I/II B No No Page 810 of 1128 Resolution No. 2024-006 Page 3 Principal Planner B No No Project Manager B No No Public Affairs Manager B No No Senior Contracts and Grants Analyst B No No Senior Engineer B No No Senior Management Analyst B No No Senior Planner B No No Senior Project Manager B No No Special Events Coordinator B No No Streets Maintenance Supervisor B No No Executive Assistant/Coordinator (City Manager) C No No Human Resources Analyst C No No Group X: Executive Contract Positions: The classifications designated as Group X, Executive Contract, have the highest level of executive responsibility and authority; these positions are governed by individual employment agreements. Group A: Directors and Department Heads The classifications designated as Group A have a higher level of responsibility and authority and they are exempt from overtime provisions as defined by the Fair Labor Standards Act and set forth in the Personnel Rules and Regulations, Section 2.52.305. They may be At Will and governed by employment agreements. Among other things, these positions require spending numerous extra hours at meetings, conferences and work. Group B: Mid-Management/Professional The classifications designated as Group B are managerial, supervisorial or professional in nature and they are exempt from overtime provisions as defined by the Fair Labor Standards Act and set forth in the Personnel Rules and Regulations, Section 2.52.305. Among other things, these positions require spending occasional extra hours at meetings, conferences and work. Group C: Confidential The classifications designated as Group C are professional in nature and they are exempt from overtime provisions as defined by the Fair Labor Standards Act and set forth in the Personnel Rules and Regulations, Section 2.52.305. Among other things, these positions Page 811 of 1128 Resolution No. 2024-006 Page 4 require spending occasional extra hours at meetings, conferences and work. These positions also assist and act in a confidential capacity to persons who formulate, determine, and effectuate management policies with regard to labor relations, and are defined as “Confidential” in the Personnel Rules and Regulations, Section 2.53.100. ADOPTED ON FEBRUARY 15, 2024. KARINA QUINTANILLA MAYOR ATTEST: ANTHONY J. MEJIA CITY CLERK I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that Resolution No. 2024-006 is a full, true, and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Desert on February 15, 2024, by the following vote: AYES: HARNIK, KELLY, NESTANDE, TRUBEE, AND QUINTANILLA NOES: NONE ABSENT: NONE ABSTAIN: NONE RECUSED: NONE IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on _____________________. ANTHONY J. MEJIA CITY CLERK Page 812 of 1128 FY 2023-2024 City of Palm Desert Allocated Positions Resolution No. 2024-____ Exhibit "A" Classification Allocated Positions Salary Grade Exempt Status Notes: City Manager 1 CM Exempt X Assistant City Manager 1 73 Exempt X City Engineer 1 70 Exempt B Management Analyst I/II 1 40/42 Exempt B Homeless and Support Services Manager 1 48 Exempt B Executive Assistant/Coordinator 1 36/40 Non-Exempt C (confidential) 1104130 6 Human Resources HR Manager 1 62 Exempt B HR Specialist 1 36 Non-Exempt Human Resources Analyst I/II 2 40/42 Exempt C (confidential) 1104154 4 City Clerk 1 66 Exempt X Assistant City Clerk 1 46 Exempt B Administrative Assistant I/II- City Council 1 28/32 Non-Exempt Receptionist 1 20 Non-Exempt Records Coordinator 1 38 Non-Exempt Senior Deputy Clerk 1 38 Non-Exempt Deputy Clerk I/II 1 34/36 Non-Exempt 1104111 7 Total City Manager 17 Library Services Director of Library Services 1 68 Exempt X Assistant Director of Library Services 1 56 Exempt B Library Manager 2 50 Exempt B Library Technician/Specialist 14 20/24/28 Non-Exempt 2524662 18 Total Library Services 18 Finance Director of Finance/City Treasurer 1 71 Exempt X Deputy Director of Finance 2 63 Exempt B Finance Supervisor 1 46 Exempt B Senior Contracts and Grants Analyst 1 46 Exempt B Management Analyst I/II 2 40/42 Exempt B Accountant 3 43 Non-Exempt Senior Administrative Assistant 1 34 Non-Exempt Administrative Assistant I/II 1 28/32 Non-Exempt Accounting Technician I/II 4 28/32 Non-Exempt 1104150 16 Affordable Housing Housing Manager 1 51 Exempt B CITY MANAGER City Clerk FINANCE LIBRARY SERVICES Page 1 of 4 Effective February 15, 2024Page 813 of 1128 FY 2023-2024 City of Palm Desert Allocated Positions Resolution No. 2024-____ Exhibit "A" Classification Allocated Positions Salary Grade Exempt Status Notes: Management Analyst I/II 1 40/42 Exempt B 8704195 2 Information Technology Information Systems Manager 1 62 Exempt B Technician 1 28/32 Senior Information Systems Administrator 1 48 Non-Exempt Senior Network Engineer 1 48 Non-Exempt Senior GIS Admin 1 47 Non-Exempt Biz Systems Enterprise 2 42 Non-Exempt 1104190 7 Total Finance 25 Director, Econ Development 1 70 Exempt X Deputy Director, Econ Development 1 63 Exempt B Economic Development Coordinator 1 46 Exempt B Administrative Assistant I/II - Econ. Dvlpt.1 28/32 Non-Exempt 4430 4 Special Programs Special Events Coordinator 1 42 Exempt B Management Analyst I/II- Environmental 1 40/42 Exempt B Management Analyst I/II - Art 1 40/42 Exempt B Administrative Assistant I/II - Special Programs 1 28/32 Non-Exempt 4430 4 Public Affairs Public Affairs Manager 1 56 Exempt B Community Relations Supervisor 1 46 Exempt B Communications Analyst I/II 1 40/42 Exempt B Management Analyst I/II 1 40/42 Exempt B Marketing Assistant 1 28 Non-Exempt Office Assistant I/II 1 20/24 Non-Exempt 4417 6 TotalEconomic Development 14 Development Services /Planning Director of Development Services 1 70 Exempt X Dep Dir of Development Services 1 63 Exempt B Executive Assistant 1 36 Non-Exempt Principal Planner 1 53 Exempt B Senior Planner 1 46 Exempt B Associate Planner I/II 1 42/44 Exempt B Planning Technician 2 34 Non-Exempt DEVELOPMENT SERVICES Economic Development Page 2 of 4 Effective February 15, 2024Page 814 of 1128 FY 2023-2024 City of Palm Desert Allocated Positions Resolution No. 2024-____ Exhibit "A" Classification Allocated Positions Salary Grade Exempt Status Notes: Management Analyst I/II 2 40/42 Exempt Land Development Technician 1 38 Non-Exempt 4470 11 Building & Safety Chief Building Official 1 62 Exempt B Assistant Building Official 1 51 Exempt B Senior Building Inspector 1 42 Non-Exempt Building Inspector I/II 3 34/38 Non-Exempt Adminstrative Assistant I/II 1 28/32 Non-Exempt 4420 7 Code Compliance Code Compliance Supervisor 1 46 Exempt B Code Compliance Officer I/II 4 30/34 Non-Exempt Administrative Assistant I/II 1 28/32 Non-Exempt Office Assistant II 1 20/24 Non-Exempt 4422 7 Palm Desert Permit Center Senior Permit Technician 1 35 Non-Exempt GIS Analyst 1 42 Non-Exempt Permit Technician I/II 3 28/32 Non-Exempt 4421 5 Total Development Services 30 Capital Projects Administration Director of Capital Projects 1 70 Exempt X Capital Projects Manager 1 53 Exempt B Senior Project Manager 1 50 Exempt B Project Manager 2 48 Exempt B Public Works Inspector I/II 3 34/37 Non-Exempt Total Capital Projects 8 Director of Public Works 1 70 Exempt X Deputy Director of Public Works 1 63 Exempt B Business Operations Manager 1 50 Exempt B Senior Management Analyst 1 45 Exempt B Project Manager 1 48 Exempt B Management Analyst I/II 1 40/42 Exempt B Senior Administrative Assistant 1 34 Non-Exempt Office Assistant I/II 1 20/24 Non-Exempt 4300 8 Community Services Community Services Mger 1 51 Exempt B PUBLIC WORKS CAPITAL PROJECTS Page 3 of 4 Effective February 15, 2024Page 815 of 1128 FY 2023-2024 City of Palm Desert Allocated Positions Resolution No. 2024-____ Exhibit "A" Classification Allocated Positions Salary Grade Exempt Status Notes: Supervising Landscape Supervisor 1 46 Exempt B Landscape Inspector 3 34 Non-Exempt 4614 5 Facilities Management Project Manager 1 48 Exempt B Senior Facilities Specialist 1 38 Non-Exempt Facilities Specialist 1 36 Non-Exempt Project Technician 1 34 Non-Exempt 4340 4 Streets Maintenance Streets Maintenance Supervisor 1 46 Exempt B Administrative Assistant I/II 1 28/32 Non-Exempt Senior Maintenance Worker 2 40 Non-Exempt Maintenance Worker III 4 36 Non-Exempt Maintenance Worker I/II 5 28/32 Non-Exempt 4310 13 Traffic Signal Maintenance Senior Project Manager 1 50 Exempt B Senior Traffic Signal Specialist 1 45 Non-Exempt Traffic Signal Technician I/II 3 34/38 Non-Exempt 4310 5 Total Public Works 35 TOTAL ALLOCATED POSITIONS 147 Page 4 of 4 Effective February 15, 2024Page 816 of 1128 2023-24 Mid-year Budget Adjustments Request for Approval Mid-Year Budget Report and Staff Allocation City Council –February 15, 2024 Page 817 of 1128 General Fund Net Positive Adjustment Requested Page 818 of 1128 GF Budget Request Summary Page 819 of 1128 Major Changes to General Fund MAJOR CHANGES TO REVENUE •Decrease to Sales Tax Estimate –($1.6M) •Increase to TOT Estimate – $1.5M •Increase to Interest Earnings Estimate -$2.5M MAJOR CHANGES TO EXPENDITURES •Increase to Software License Costs –$250k •Increase to Utility Costs - $111k •Increase/Decrease to Salaries/Benefits –Net Zero Page 820 of 1128 Special Funds Adjustment Requested to be covered by Fund Balance Page 821 of 1128 Special Funds Summary Page 822 of 1128 Major Changes to Special Funds MAJOR CHANGES TO REVENUE •Addition of SARDA Budget– $23.8M •Decrease to Cannabis Estimate –($300k) •Inc to HA/HAF Interest Earning Estimates-$1.4M MAJOR CHANGES TO EXPENDITURES •Increase to Measure A Costs –$4.9M •Addition of SARDA Budget - $23.8M •Increase/Decrease to Hsg Salaries/Benefits –Net Zero Page 823 of 1128 Staff Allocation Update The City Manager is authorized to modify the allocated classification, positions, and salary schedule as necessary throughout each fiscal year that he determines to be necessary to meet the needs of the City. The update provided with the midyear budget is intended to support current staffing. Staff Allocation Updates will be brought forward as a ratification in the future. Page 824 of 1128 Questions? Request for Approval of FY 2023-24 Mid-Year Budget Report and Staff Allocation Page 825 of 1128 Page 826 of 1128 Page 1 of 5 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 15, 2024 PREPARED BY: Veronica Chavez, Director of Finance REQUEST: APPROVE RESOLUTION AUTHORIZING THE ISSUANCE OF UNIVERSITY PARK COMMUNITY FACILITIES DISTRICT NO. 2021-1 SPECIAL TAX BONDS, SERIES 2024 RECOMMENDATION: Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ACTING FOR ITSELF AND AS THE LEGISLATIVE BODY OF CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK), TO AUTHORIZE THE ISSUANCE OF THE DISTRICT’S SPECIAL TAX BONDS, SERIES 2024, AND APPROVING CERTAIN DOCUMENTS AND TAKING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH). BACKGROUND/ANALYSIS: The City of Palm Desert Community Facilities District No. 2005 -1 (University Park), issued two series of bonds in 2006 (the “2006 Bonds”) and in 2007 (the “2007 Bonds”) with a combined par amount of $70 million. In early 2016, the City aut horized a bond call of the outstanding 2007 Bonds and part of the outstanding 2006 Bonds using unspent bond proceeds. On April 22, 2021, the City Council, as legislative body of the District approved a Resolution of Formation forming the District and held an election on May 13, 2021, authorizing the levy of a special tax and the issuance of bonds by the District in an aggregate principal amount not to exceed $50,000,000. The District issued its Community Facilities District No. 2021 -1 (University Park), Special Tax Bonds, Series 2021 (the “2021 Bonds”) in the amount of $15,200,000, pursuant to a Bond Indenture dated as of July 1, 2021 (the “Master Indenture”). The proceeds of the 2021 Bonds refunded a pro -rata share of the remaining 2006 Bonds and provided approximately $1.974 million of new money for the Project. The remaining portion of the 2006 Bonds remained with the original Community Facilities District No. 2005 -1 (University Park) and were subsequently refunded in a separate action. As of the appraisal date, December 15, 2023, there were approximately 102 single -family homes owned by individuals, Toll Brothers owns 169 lots, UPI owns the remainder of the properties in the District including 53 single-family lots, 81 approved lots and 664 undeveloped lots. The debt service coverage, from maximum special taxes, is estimated to be greater than 1.25x each year when the debt service is combined for both the 2021 Bonds and the proposed 2024 Bonds. The appraised value of the property to the principal amount of both the outstanding 2021 Bonds and the proposed 2024 Bonds generates a value -to-lien ratio of approximately 6.64:1. The relatively high debt service coverage; the relatively high value -to-lien ratio; approximately 10% of the Page 827 of 1128 City of Palm Desert Consideration of University Park CFD 2021-1 Special Tax Bond, Series 2024 Page 2 of 5 property being with individual owners; a recent land sale to a merchant builder and good sales traffic within the District, all help to enhance the story and the credit of the 2024 Bonds. The 2024 Bonds will be issued as non-rated securities in the approximate principal amount of $11,900,000 and, after costs of issuance, capitalized interest and a deposit to a reserve fund, will generate approximately $10,000,000 for the acquisition of public infrastructure. As part of the legislative action, the attached resolution authorizing the issuance requires certain not-to- exceed parameters to be established. The not-to-exceed principal amount is set at $13,000,000 The not-to-exceed true interest cost is set at 6.50%, and The not-to-exceed underwriter’s discount is set at 1.50%. The 2024 Bonds will be sold on parity with the 2021 Bonds. Parity means that both the 2021 Bonds and the 2024 Bonds have an equal right to the special tax revenue from the District and all funds held under the Master Indenture. As of January 4, 2024, the issuance is currently estimated as follows: Interest rates ranged from 4.25 to 5.50% and yields ranged from 4.50% to 5.58%. The currently principal amount is $11,900,000 The true interest cost is 5.56% The underwriter’s discount is 1.30% ($154,700), and The costs of issuance are at a fixed $265,000. The estimated interest rates and yields are subject to changing market conditions and will not be final until the date of sale, currently anticipated to be Wednesday March 6, 2024. The Resolution of Issuance approves the following documents in substantially final form, and authorizes the Mayor (or in the Mayor’s absence, the Vice Mayor) and the City Manager (or in the City Manager’s absence, the Assistant City Manager) to execute such documents with s uch changes as approved by such authorized officer: 1. First Supplemental Indenture: The First Supplement Indenture, together with the Master Indenture, provides the terms of the 2024 Bonds, including provisions for security and payment of the 2024 Bonds. The Master Indenture for the 2021 Bonds established U.S. Bank National Association (“U.S. Bank”) as Trustee for the 2021 Bonds. U.S. Bank will also be Trustee for the 2024 Bonds, will authenticate the 2024 Bonds and deliver them to the Underwriter in accordance with instructions provided in the Bond Purchase Agreement. 2. Official Statement and Continuing Disclosure Agreement: The Official Statement is the primary document used by the Underwriter to market the bonds to investors. The Official Statement describes the 2024 Bonds in detail and all the information about the District used by investors to make an informed purchase decision. The Preliminary Official Statement will be deemed final pursuant to Rule 15c -2-12 under the Securities Exchange Act of 1934. The only permitted items to be excluded from the Preliminary Official Statement are data and tables related to final pricing information for the 2024 Bonds. Page 828 of 1128 City of Palm Desert Consideration of University Park CFD 2021-1 Special Tax Bond, Series 2024 Page 3 of 5 The Continuing Disclosure Agreement, included as an attachment to the Official Statement, describes covenants of the City to provide ongoing continuing disclosure to investors in the form of an annual report due by April 1 each year and posted to the electronic platform known as the Electronic Municipal Market Access (“EMMA”) system. The City also covenants to provide notices of certain listed events also known as “material event notices” if and when they occur. 3. Bond Purchase Agreement: The Bond Purchase Agreement between the City and Piper Sandler & Co. as Underwriter will reflect all the terms and conditions of the sale and the required documents to close the transaction. The Bond Purchase Agreement, when executed, will reflect the final interest rates, yields and prices of the various maturities of the 2024 Bonds sold to investors. There are many participants involved in the issuance of the 2024 Bonds. Participant Purpose Description of Duties Del Rio Advisors, LLC Municipal Advisor (MA) Assists City with structure, timing, and terms of the bonds. Was MA for the 2021 Bonds. Piper Sandler & Co Underwriter Sells the bonds to market. Was the UW for the 2021 Bonds. Richards Watson & Gershon Bond Counsel Advises City on Bond Law. Prepares key documents and delivers opinion regarding validity of the bonds. Best, Best & Krieger Disclosure Counsel Prepares Official Statement (OS) Willdan Special Tax Consultant Provides key information for OS, administers special tax statement, and assist with continuing disclosure requirements. Capital Realty Analysts Appraiser Provides appraisal of all properties within the district US Bank Trustee Manages the funds associated with the bonds and makes the debt service payments. Legal Review: This report has been reviewed by the City’s Bond Counsel at Richards, Watson & Gershon. Strategic Plan: Approval of the City of Palm Desert, Community Facilities District No. 2021 -1 (University Park), Special Tax Bonds, Series 2024 (the “2024 Bonds”) supports the Land Use, Housing and Open Space Priority 2 by providing funds to assist in further development of Community Facilities District No. 2021-1 (University Park) (the “District”). FINANCIAL IMPACT: The 2024 Bonds are not a debt or obligation of the City. The debt service on the 2024 Bonds and the 2021 Bonds will be paid from the special tax, which is a dded each year to the property owner tax bills and paid in accordance with normal property tax collection and payment procedures. Page 829 of 1128 City of Palm Desert Consideration of University Park CFD 2021-1 Special Tax Bond, Series 2024 Page 4 of 5 The costs paid to the financing professionals for the 2024 Bonds includes compensation to the Underwriter in the form of an underwriter’s discount which is a based on a percentage of the principal amount and will vary depending on the final principal amount of the 2024 Bonds. Other fixed costs include the fees and expenses of the Municipal Advisor, the Bond Counsel, the Disclosure Counsel, the Special Tax Consultant, the Appraiser, the Trustee and other costs (i.e., staff costs and printing costs for the official statement). The total cost is estimated to be 3.53% of the total principal amount of the 2024 Bonds, or approximate ly $420,418.54, which includes an estimated underwriter’s discount in the amount of $154,700.00 and the estimated fixed costs of issuance in the amount of $265,718.54. Good Faith Estimates California Government Code Section 5852.1 requires that the City disclose specified information obtained as good faith estimates from an underwriter or municipal advisor prior to authorization of the issuance of the 2024 Bonds. The City has received such information from the Underwriter as set forth below: (1) Name of Underwriter: Piper Sandler & Co. (2) City Council Meeting Date: February 15, 2024 (3) Name of Bond Issue: City of Palm Desert, Community Facilities District No. 2021-1 (University Park), Special Tax Bonds, Series 2024 (4) The Underwriter has provided to the City the following required good faith estimates relating to the 2024 Bonds in the estimated principal amount of $11,900,000 : a) The true interest cost of the 2024 Bonds, which means the rate necessary to discount the amounts payable on the respective principal and interest payment dates to the purchase price received for the new issue of bonds: 5.558472%. b) The finance charge of the 2024 Bonds, which means the sum of all fees and charges paid to third parties: $420,418.54 (includes both the underwriter’s discount in the estimated amount of $154,700.00 and costs of issuance in the estimated amount of $265,718.54). c) The amount of proceeds received by the public body for sale of the 2024 Bonds less the finance charge of the 2024 Bonds described in subparagraph b) and less any reserves or capitalized interest paid or funded with proceeds of the 2024 Bonds: $9,935,000. d) The total payment amount, which means the total of all payments the public body will make to pay debt service on the 2024 Bonds (which total payment amount is calculated to the final maturity of the 2024 Bonds): $25,744,946.09. The foregoing estimates constitute good faith estimates only. The actual principal amount of the 2024 Bonds issued and sold, the true interest cost thereof, the finan ce charges thereof, the amount of proceeds received therefrom and total payment amount with respect thereto may differ from such good faith estimates due to a variety of factors. The actual interest rates borne by the 2024 Bonds and the actual amortization of the 2024 Bonds will depend on market interest rates at the time of sale thereof. Market interest rates are affected by economic and other factors beyond the control of the City. Page 830 of 1128 City of Palm Desert Consideration of University Park CFD 2021-1 Special Tax Bond, Series 2024 Page 5 of 5 ATTACHMENTS: 1. Resolution Approving the Sale of the 2024 Bonds 2. First Supplemental Indenture 3. Preliminary Official Statement (Including the Continuing Disclosure Agreement) 4. Bond Purchase Agreement 5. Draft Bond Numbers Page 831 of 1128 Page 832 of 1128 RESOLUTION NO. 2024-007 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ACTING FOR ITSELF AND AS THE LEGISLATIVE BODY OF CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK), TO AUTHORIZE THE ISSUANCE OF THE DISTRICT’S SPECIAL TAX BONDS, SERIES 2024, AND APPROVING CERTAIN DOCUMENTS AND TAKING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH RECITALS: WHEREAS, the City Council of the City of Palm Desert (the “City”), located in Riverside County, California (the “City Council”, and hereinafter sometimes referred to also as the “legislative body of the District”), has formed the City of Palm Desert Community Facilities District No. 2021-1 (University Park) (the “District”), pursuant to the terms and provisions of the Mello- Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”); WHEREAS, the District was formed by the City Council at the request and petition of University Park Investor, LLC, the owner and developer of the property within the District (the “Developer”) to finance certain public facilities necessary to meet the increased demands placed upon the public infrastructure, the City, and the Coachella Valley Water District as a result of the development of the property within the boundaries of the District (including development impact fees therefor); WHEREAS, based upon Resolution No. 2021-10 (the “Resolution of Formation”) and Resolution No. 2021-11, each adopted by the legislative body of the District on April 22, 2021, and an election held on May 13, 2021 authorizing the levy of a special tax and the issuance of bonds by the District, the District is authorized to issue bonds for one or more series, pursuant to the Act, in an aggregate principal amount not to exceed $50,000,000 for the purpose of financing certain public facilities identified in the Resolution of Formation (the “Project”); WHEREAS, the City, the District, and the Developer, entered into an Acquisition Agreement, dated as of June 24, 2021, which specifies the public facilities the Developer will construct that are eligible to be financed from bond proceeds; WHEREAS, in July 2021, pursuant to a Bond Indenture, dated as of July 1, 2021 (the “Master Indenture”), by and between the District and U.S. Bank Trust Company, National Association, as trustee, the District issued its Special Tax Bonds, Series 2021 (the “Series 2021 Bonds”) in the initial aggregate principal amount of $15,200,000. WHEREAS, the District deems it necessary and desirable to issue bonds on a parity with the Series 2021 Bonds designated as the “City of Palm Desert Community Facilities District No. 2021-1 (University Park), Special Tax Bonds, Series 2024” (the “Series 2024 Bonds”), for the purpose of financing additional costs of the Project. WHEREAS, as a precondition to the issuance of the Series 2024 Bonds; Section 53345.8 of the Act requires the value of the real property in the District subject to the special tax to pay debt service on the Series 2024 Bonds to be not less than three (3) times the principal amount of the Series 2024 Bonds and the principal amount of all other bonds outstanding Page 833 of 1128 Resolution No. 2024-007 Page 2 (including the Series 2021 Bonds) that are secured by a special tax levied pursuant to the Act or a special assessment levied on property within the District; WHEREAS, in order to effect the issuance of the Series 2024 Bonds, the City Council, for itself and as the legislative body of the District, desires to approve the form of a Preliminary Official Statement and to approve the forms of, and authorize the execution and delivery of, a First Supplemental Indenture for the Series 2024 Bonds, a Bond Purchase Agreement, and a Continuing Disclosure Agreement, the forms of which are on file with the City Clerk. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT, ACTING FOR ITSELF AND AS THE LEGISLATIVE BODY OF CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK), DOES HEREBY RESOLVE, FIND, DECLARE AND ORDER AS FOLLOWS: SECTION 1. Each of the above recitals is true and correct and is adopted by the City Council, acting for itself and as the legislative body of the District. SECTION 2. The legislative body of the District hereby finds and determines that, as determined in accordance with Section 53345.8 of the Act and as required by the City’s Goals and Policies for Community Facilities Districts adopted by Resolution No. 05-86 approved by the City Council on October 13, 2005 pursuant to Section 53312.7 of the Act (the “CFD Goals and Policies”), the value of the real property in the District subject to the special tax to pay debt service on the Series 2024 Bonds is not less than three (3) times the principal amount of the Series 2024 Bonds and the principal amount of all other bonds outstanding (including the Series 2021 Bonds) that are secured by a special tax levied pursuant to the Act or a special assessment levied on property within the District. This determination is based on an appraisal with respect to the real property within the District, which appraisal has been made in a manner consistent with the CFD Goals and Policies, as further described in the Preliminary Official Statement (as defined in Section 6 below). SECTION 3. The issuance of the Series 2024 Bonds in an aggregate principal amount not to exceed $13,000,000 is hereby authorized, with the exact principal amount of the Series 2024 Bonds to be determined by the official signing the Bond Purchase Agreement in accordance with Section 5 below. The Bonds may be issued as a single issue, or as separate series, as determined by Bond Counsel to comply with applicable tax law. The legislative body of the District hereby determines that it is prudent in the management of its fiscal affairs to issue the Series 2024 Bonds. The Series 2024 Bonds shall mature on the dates and pay interest at the rates set forth in the Bond Purchase Agreement to be executed by the District in accordance with Section 5 hereof. The Series 2024 Bonds shall be governed by the terms and conditions of the Master Indenture, as supplemented by the First Supplemental Indenture presented at this meeting, on file with the City Clerk and incorporated herein by reference (the “First Supplemental Indenture”). The First Supplemental Indenture shall be executed by any one of the Mayor, the Mayor Pro Tem (in the Mayor’s absence), the City Manager, the Assistant City Manager (in the City Manager’s absence), or any deputy of such officers (each, an “Authorized Officer”), acting singly, in substantially the form presented at this meeting, with such additions thereto and changes therein as may be approved by such officer upon consultation with Bond Counsel. Approval of such changes shall be conclusively evidenced by the execution and delivery of the First Supplemental Indenture by any one of the Authorized Officers. The date or dates, maturity or maturities, pledge or assignment of any revenues of the District to the repayment of the Series 2024 Bonds, the manner of investment of any bond proceeds and other revenues, manner of payment, interest rate or rates, interest payment dates, denominations, form, registration Page 834 of 1128 Resolution No. 2024-007 Page 3 privileges, manner of execution, place of payment, terms of redemption, rebate provisions, funds designated to pay the costs of issuance of the Series 2024 Bonds, and other terms of the Series 2024 Bonds shall be as provided in the Master Indenture, as supplemented by the First Supplemental Indenture, as finally executed, and shall be in conformance with any such terms set forth in the Bond Purchase Agreement described in Section 5 below and the Official Statement described in Section 6 below and delivered to the purchasers of the Series 2024 Bonds. Capitalized terms used in this Resolution which are not defined herein have the meanings ascribed to them in the Master Indenture, as supplemented by the First Supplemental Indenture. SECTION 4. The Series 2024 Bonds shall be executed on behalf of the District by the manual or facsimile signature of the Mayor of the City an d attested with the manual or facsimile signature of the City Clerk. The appointment of U.S. Bank Trust Company, National Association, a national banking association, as trustee (the “Trustee”) under the First Supplemental Indenture is hereby approved. SECTION 5. The form of the Bond Purchase Agreement by and between the District and the Underwriter presented at this meeting, on file with the City Clerk and incorporated herein by reference (the “Bond Purchase Agreement”), is hereby approved, and any one of the Authorized Officers is hereby authorized to execute the Bond Purchase Agreement in substantially the form hereby approved, with such additions thereto and changes therein as may be approved by such officer upon consultation with Bond Counsel. Approval of such additions and changes shall be conclusively evidenced by the execution and delivery of the Bond Purchase Agreement; provided, however, that the Bond Purchase Agreement shall be signed only if (i) the Series 2024 Bonds are purchased by the Underwriter at a price that results in a total interest cost that does not exceed 6.50%, (ii) the discount paid to the Underwriter (exclusive of original issue discount) does not exceed 1.50% of the principal amount of the Series 2024 Bonds, (iii) the aggregate principal amount of the Series 2024 Bonds does not exceed $13,000,000. The legislative body of the District hereby finds and determines, pursuant to Section 53360.4 of the Act, that the sale of the Series 2024 Bonds at a negotiated sale to the Underwriter, as contemplated by the Bond Purchase Agreement, will result in a lower overall cost than a public sale. Each of the Authorized Officers is authorized to determine the day on which the Series 2024 Bonds are to be priced in order to attempt to produce the lowest borrowing cost for the District and may reject any terms presented by the Underwriter if determined not to be in the best interest of the District. SECTION 6. The form of the Preliminary Official Statement for the Series 2024 Bonds presented at this meeting, on file with the City Clerk and incorporated herein by reference (the “Preliminary Official Statement”) is hereby approved. For purposes of this Section 6, the term “Authorized Officers” shall include the City Treasurer. The Underwriter is hereby authorized to distribute the Preliminary Official Statement to prospective purchasers of the Series 2024 Bonds in substantially the form hereby approved, together with such additions thereto and changes therein as are determined necessary by any one of the Authorized Officers, upon consultation with Bond Counsel and Disclosure Counsel, to make the Preliminary Official Statement final as of its date for purposes of Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 of the Securities and Exchange Commission, including, but not limited to, such additions and changes as are necessary to make all information set forth therein accurate and not misleading. Each of the Authorized Officers is hereby authorized to execute a final Official Statement in substantially the form of the Preliminary Official Statement, together with such changes as are determined necessary by the Authorized Officer executing the Official Statement, upon consultation with Bond Counsel, to make such Official Statement complete and accurate as of its date. The Underwriter is further authorized to distribute the final Official Statement for the Series Page 835 of 1128 Resolution No. 2024-007 Page 4 2024 Bonds and any supplement thereto to the purchasers thereof upon its execution on behalf of the District as described above. SECTION 7. The form of the Continuing Disclosure Agreement for the Series 2024 Bonds presented at this meeting and appended to the Preliminary Official Statement, on file with the City Clerk and incorporated herein by reference (the “Continuing Disclosure Agreement”), is hereby approved, and any one of the Authorized Officers is hereby authorized and directed to execute the Continuing Disclosure Agreement in substantially the form hereby approved, with such additions thereto and changes therein as may be approved by such officer upon consultation with Bond Counsel and Disclosure Counsel, with such approval to be conclusively evidenced by the execution and delivery of the Continuing Disclosure Agreement. SECTION 8. Appointment of Financing Team. The appointments of Del Rio Advisors, LLC, as municipal advisor; Richards, Watson & Gershon, A Professional Corporation, as bond counsel; Best Best & Krieger LLP, as disclosure counsel; Capital Realty Analysts, as appraiser; and Piper Sandler & Co, Inc., as underwriter, in connection with the proposed issuance of the Series 2024 Bonds, are hereby approved and affirmed. SECTION 9. All actions heretofore taken by the officers and agents of the City and the District with respect to the establishment of the District, the issuance and sale of the Series 2024 Bonds, or in connection with or related to any of the agreements or documents referenced herein are hereby approved, confirmed, and ratified. The Mayor, each of the Authorized Officers, the Director of Finance, the Development Services Director, the Public Works Director, and other officers and staff of the City and the District responsible for the fiscal affairs of the District are hereby authorized and directed to take any actions, and execute and deliver any and all documents as are necessary to accomplish (a) the issuance, sale and delivery of the Series 2024 Bonds in accordance with the provisions of this Resolution; (b) the transactions contemplated by the First Supplemental Indenture, the Bond Purchase Agreement, and the Continuing Disclosure Agreement; and (c) the fulfillment of the purposes of the Series 2024 Bonds, including, but not limited to, providing certificates as to the accuracy of any information relating to the District which is included in the Official Statement. Any document authorized herein to be signed by the City Clerk may be signed by a duly appointed deputy clerk. SECTION 10. Effective Date. This Resolution shall take effect immediately upon adoption. ADOPTED ON FEBRUARY 15, 2024. ____________________________ KARINA QUINTANILLA MAYOR ATTEST: _________________________ ANTHONY J. MEJIA CITY CLERK Page 836 of 1128 Resolution No. 2024-007 Page 5 I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that Resolution No. 2024-007 is a full, true, and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Desert on February 15, 2024, by the following vote: AYES: HARNIK, KELLY, NESTANDE, TRUBEE, AND QUINTANILLA NOES: NONE ABSENT: NONE ABSTAIN: NONE RECUSED: NONE IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on ___________________. _____________________________ ANTHONY J. MEJIA CITY CLERK Page 837 of 1128 Page 838 of 1128 2837234 CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) and U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION as Trustee FIRST SUPPLEMENTAL INDENTURE Dated as of [March] 1, 2024 Relating to $[principal amount] City of Palm Desert Community Facilities District No. 2021-1 (University Park) Special Tax Bonds Series 2024 Page 839 of 1128 Page 840 of 1128 TABLE OF CONTENTS Page -i- 2837234 ARTICLE I AUTHORITY AND DEFINITIONS ................................................................................. 2 SECTION 1.01. SUPPLEMENTAL INDENTURE ................................................................. 2 SECTION 1.02. AUTHORITY FOR FIRST SUPPLEMENTAL INDENTURE ................................... 2 SECTION 1.03. DEFINITIONS ..................................................................................... 2 ARTICLE II THE SERIES 2024 BONDS ....................................................................................... 3 SECTION 2.01. AUTHORIZATION ................................................................................ 3 SECTION 2.02. TERMS OF SERIES 2024 BONDS ............................................................ 3 SECTION 2.03. BOOK-ENTRY SYSTEM ......................................................................... 4 SECTION 2.04. FORM OF SERIES 2024 BONDS ............................................................. 4 SECTION 2.05. EXECUTION AND AUTHENTICATION ........................................................ 5 SECTION 2.06. REDEMPTION OF SERIES 2024 BONDS ................................................... 5 SECTION 2.07. APPLICATION OF PROCEEDS OF SERIES 2024 BONDS ................................. 7 ARTICLE III MISCELLANEOUS ................................................................................................... 7 SECTION 3.01. EXECUTIONS IN COUNTERPARTS ............................................................ 7 APPENDIX A – FORM OF SERIES 2024 BOND Page 841 of 1128 Page 842 of 1128 -1- 2837234 FIRST SUPPLEMENTAL INDENTURE This First Supplemental Indenture, dated as of [March] 1, 2024, is entered into by and between City of Palm Desert Community Facilities District No. 2021-1 (University Park), a community facilities district established under the Mello-Roos Community Facilities Act of 1982 (the “District”), and U.S. Bank Trust Company, National Association , a national banking association duly organized and existing under laws of the United States of America and authorized to accept and execute trusts of the character herein set forth, as trustee (the “Trustee”). Recitals A. The District is a community facilities district established under the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5, of the Government Code of the State of California (the “Act”), duly created, established and authorized to finance certain public facilities and services and exercise its powers, all under and pursuant to the Act (as defined in the Master Indenture hereinafter described), and the powers of the District include the power to issue bonds for the financing of authorized public facilities. B. The City Council of the City of Palm Desert, locat ed in Riverside County, California (hereinafter sometimes referred to as the “legislative body of the District” or the “City”), has heretofore undertaken proceedings and declared the necessity to issue bonds on behalf of the District pursuant to the terms and provisions of the Act. C. Based upon Resolution Nos. 2021-10 and 2021-11 adopted by the legislative body of the District on April 22, 2021 and an election held May 13, 2021 authorizing the levy of a special tax and the issuance of bonds by the District, the District is authorized to issue bonds for one or more series, pursuant to the Act, in an aggregate principal amount not to exceed $50,000,000, for the purpose of financing the Project. D. Pursuant to a Bond Indenture, dated as of July 1, 2021 (the “Master Indenture”), by and between the District and U.S. Bank Trust Company, National Association, as trustee, the District has heretofore issued its Special Tax Bonds, Series 2021 (the “Series 2021 Bonds”) in the initial aggregate principal amount of $15,200,000. E. The District deems it necessary and desirable to issue Parity Bonds (as defined in the Master Indenture) for the purpose of financing additional costs of the Project. F. To accomplish such purpose, the District has determined to issue its Special Tax Bonds, Series 2024 (the “Series 2024 Bonds”), in the aggregate principal amount of $[principal amount], all pursuant to and secured by the Master Indenture, as amended and supplemented by this First Supplemental Indenture (together, the “Indenture”) in the manner provided therein and herein. G. The execution and delivery of the Series 2024 Bonds and of this First Supplemental Indenture have been duly authorized and all things necessary to make the Series 2024 Bonds, when executed by the District and authenticated by the Trustee, valid and binding legal obligations Page 843 of 1128 -2- 2837234 of the District and to make this First Supplemental Indenture a valid and binding legal instrument for the security of the Series 2024 Bonds, have been done. NOW THEREFORE, THIS FIRST SUPPLEMENTAL INDENTURE WITNESSETH, that in order to secure the payment of the principal of, and the interest and premium, if any, on, all Series 2024 Bonds at any time issued and Outstanding under the Indenture, according to their tenor, and to secure the performance and observance of all the covenants and conditions therein and herein set forth, and to declare the terms and conditions upon and subject to which the Series 2024 Bonds are to be issued, and in consideration of the premises and of the mutual covenants herein contained and of the purchase and acceptance of the Series 2024 Bonds by the owners thereof, and for other valuable consideration, the receipt whereof is hereby acknowledged, the District does hereby covenant and agree with the Trustee, for the benefit of the respective holders from time to time of the Series 2024 Bonds, as follows: ARTICLE I AUTHORITY AND DEFINITIONS SECTION 1.01. Supplemental Indenture. This First Supplemental Indenture is supplemental to the Master Indenture. Save and except as amended and supplemented by this First Supplemental Indenture, the Master Indenture shall remain in full force and effect. SECTION 1.02. Authority for First Supplemental Indenture. This First Supplemental Indenture is adopted (i) pursuant to the provisions of the Act and (ii) in accordance with Section 6.1 and Article IX of the Master Indenture. SECTION 1.03. Definitions. Except as provided by this First Supplemental Indenture, all terms which are defined in Section 1.1 of the Master Indenture shall have the same meanings, respectively, in this First Supplemental Indenture. The following additional terms shall, for all purposes of the Indenture, have the following meanings: “Bonds” means the Series 2021 Bonds, the Series 2024 Bonds and any additional Parity Bonds. “Capitalized Interest Subaccount” means the subaccount by that name created and established in the Interest Account of the Special Tax Fund pursuant to Section 3.1 of the Master Indenture and Section 2.07 of this First Supplemental Indenture. “Closing Date” means, with respect to the Series 2024 Bonds, [Closing Date], 2024. “Continuing Disclosure Agreement” means that certain Continuing Disclosure Agreement dated as of __, 2024, by and between the District and Willdan Financial Services, as dissemination agent, together with any amendments thereto. “Master Indenture” means the Bond Indenture, dated as of July 1, 2021, by and between the District and U.S. Bank Trust Company, National Association, as trustee. Page 844 of 1128 -3- 2837234 “Reserve Requirement” shall mean, as of the date of calculation, an amount equal to the least of (i) Maximum Annual Debt Service on the then Outstanding Bonds and Parity Bonds; (ii) 10% of the original amount of the Bonds and Parity Bonds; or (iii) 125% of average Annual Debt Service on the then Outstanding Bonds and Parity Bonds; provided, if as of a date following the Delivery Date for a Series of Bonds, the foregoing calculation results in an amount greater than the initial Reserve Requirement for such Series of Bonds (calculated as of the Delivery Date for such Series of Bonds), then the amount of the “Reserve Requirement” shall not increase and in such event shall mean the amount of the initial Reserve Requirement for such Series of Bonds (calculated as of the Delivery Date for such Series of Bonds) until such time as the foregoing calculation results in a lower amount; provided however, notwithstanding the foregoing, the required deposit from the proceeds of Parity Bonds shall not exceed the least of the three prong test described above as if calculated on a stand-alone basis for such Parity Bonds. “Series 2024 Bonds” means the City of Palm Desert Community Facilities District No. 2021- 1 (University Park) Special Tax Bonds, Series 2024, issued pursuant to this First Supplemental Indenture, in the aggregate principal amount of $[principal amount]. “Series 2024 Term Bonds” the Series 2024 Bonds maturing on September 1, 20__ and September 1, 20__. “Underwriter” means, with respect to the Series 2024 Bonds, Piper Sandler & Co. ARTICLE II THE SERIES 2024 BONDS SECTION 2.01. Authorization. The Series 2024 Bonds are hereby authorized to be issued in the aggregate principal amount of $[principal amount] for the purpose of financing a portion of the cost of the Project. SECTION 2.02. Terms of Series 2024 Bonds. The Series 2024 Bonds authorized to be issued by the District under and subject to the terms of the Indenture and the Act shall be designated the “City of Palm Desert Community Facilities District No. 2021-1 (University Park) Special Tax Bonds, Series 2024” and shall be in the aggregate principal amount of $[principal amount]. The Series 2024 Bonds shall be dated as of the Closing Date for the Series 2024 Bonds, shall bear interest at such rates (payable on March 1 and September 1 in each year, commencing [September 1, 2024]), and shall mature and become payable as to principal on September 1 in each of the years in the amounts set forth below: Maturity Date (September 1) Principal Amount Interest Rate $ % Interest on the Series 2024 Bonds shall be computed on the basis of a 360-day year of twelve 30-day months. The Series 2024 Bonds shall be issued as fully registered bonds in the Page 845 of 1128 -4- 2837234 denomination of $5,000, or any integral multiple of $5,000 (not exceeding the principal amount of Series 2024 Bonds maturing at any one time). The Series 2024 Bonds shall be numbered as determined by the Trustee. Principal of and redemption premiums, if any, and interest on the Series 2024 Bonds shall be paid in lawful money of the United States of Ameri ca. Principal and interest on, and redemption premiums, if any, on the Series 2024 Bonds shall be payable upon the surrender thereof at maturity or the earlier redemption thereof at the Pr incipal Office of the Trustee. The Series 2024 Bonds shall bear interest from the Interest Payment Date next preceding the date of authentication thereof, unless (i) such date of authentication is an Interest Payment Date in which event interest shall be payable from such date of authentication, (ii) the date of authentication is after a Record Date but prior to the immediately succeeding Interest Payment Date, in which event interest shall be payable from the Interest Payment Date immediately succeeding the date of authentication, or (iii) the date of authentication is pr ior to the close of business on the first Record Date occurring after the issuance of the Series 2024 Bonds, in which event interest shall be payable from the dated date thereof; provided, however, that if at the time of authentication of any Series 2024 Bond, interest is in default on the Outstanding Series 2024 Bonds, interest on the Series 2024 Bond shall be payable from the last Interest Payment Date to which the interest has been paid or made available for payment or, if no interest has been paid or made available for payment on such Series 2024 Bond, interest on that Bond shall be payable from its dated date. Interest on the Series 2024 Bonds shall be paid to the person whose name appears in the Bond Register as the Owner of such Series 2024 Bond as of the close of business on the Record Date. Such interest shall be paid by check of the Trustee mailed on the Interest Payment Date by first class mail, postage prepaid, to such Bondowner at his or her address as it appears on the Bond Register. In addition, upon a request in writing received by the Trustee on or before the applicable Record Date from an Owner of $1,000,000 or more in principal amount of the Series 2024 Bonds, payment shall be made on the Interest Payment Date by wire transfer in immediate ly available funds to an account designated by such Owner. SECTION 2.03. Book-Entry System. The Series 2024 Bonds shall be initially issued as Book-Entry Bonds, in accordance with Section 2.12 of the Master Indenture. SECTION 2.04. Form of Series 2024 Bonds. The Series 2024 Bonds, the authentication and registration endorsement and the assignment to appear thereon shall be substantially in the forms attached hereto as Appendix A, with necessary or appropriate variations, omissions and insertions as permitted or required by this First Supplemental Indenture. SECTION 2.05. Execution and Authentication.The provisions set forth in Section 2.7 of the Master Indenture shall apply to the Series 2024 Bonds. SECTION 2.06. Redemption of Series 2024 Bonds. (a) Optional Redemption. Page 846 of 1128 -5- 2837234 The Series 2024 Bonds maturing on or before September 1, 20__ are not subject to optional redemption prior to maturity. The Series 2024 Bonds maturing on or after September 1, 20__ shall be subject to call and redemption prior to maturity and may be redeemed, at the option of the District, from any source of funds on any date on or after September 1, 20__ in whole, or in part, from such maturities as are selected by the District and by lot within a maturity, at the following redemption prices, expressed as a percentage of the principal amoun t to be redeemed, together with accrued interest to the redemption date: Redemption Dates Redemption Prices September 1, 20__ through August 31, 20__ 103% September 1, 20__ through August 31, 20__ 102 September 1, 20__ through August 31, 20__ 101 September 1, 20__ and any date thereafter 100 In the event the District elects to redeem Series 2024 Bonds as provided above, the District shall give written notice to the Trustee of its election to so redeem, the redemption date and the principal amount of the Series 2024 Bonds of each maturity to be redeemed. The notice to the Trustee shall be given at least forty-five (45) but no more than ninety (90) days prior to the redemption date, or by such later date as is acceptable to the Trustee, in its sole discretion. (b) Mandatory Sinking Fund Redemption. (i) The Series 2024 Bonds maturing on September 1, 20__ and September 1, 20__ (the “Series 2024 Term Bonds”) shall be called before maturity and redeemed, from the Sinking Fund Payments that have been deposited into the Redemption Account, beginning on September 1, 20__ and September 1, 20__, respectively, and on each September 1 thereafter prior to maturity, in accordance with the schedule of Sinking Fund Payments set forth below. The Series 2024 Term Bonds so called for redemption shall be selected by the Trustee by lot and shall be redeemed at a redemption price for each redeemed Series 2024 Term Bond equal to the principal amount thereof, plus accrued interest to the redemption date, without premium, as follows: SERIES 2024 BONDS MATURING SEPTEMBER 1, 20__ Redemption Date (September 1) Principal Amount $ (maturity) Page 847 of 1128 -6- 2837234 SERIES 2024 BONDS MATURING SEPTEMBER 1, 20__ Redemption Date (September 1) Principal Amount $ (maturity) In the event of a partial optional redemption or extraordinary redemption of the Series 2024 Term Bonds, each of the remaining Sinking Fund Payments for such Series 2024 Term Bonds, as described above, will be reduced, as nearly as practicable, on a pro rata basis, in integral multiples of $5,000. (ii) Purchase of Term Bonds in Lieu of Redemption. As provided in Section 3.5(d) of the Master Indenture, if during the Fiscal Year immediately preceding one of the redemption dates specified above, the District purchases Series 2024 Term Bonds, at least forty- five (45) days prior to the redemption date, the District shall notify the Trustee as to the principal amount purchased and the amount of Series 2024 Term Bonds so purchased shall be credited at the time of purchase, to the extent of the full principal amount thereof, to reduce such upcoming Sinking Fund Payment for the applicable maturity of the Series 2024 Term Bonds so purchased. All Series 2024 Term Bonds purchased pursuant to this subsection shall be cancelled pursuant to Section 10.1 of the Master Indenture. (c) Extraordinary Redemption. The Series 2024 Bonds are subject to extraordinary redemption as a whole, or in part on a pro rata basis among maturities, in integral multiples of $5,000 as nearly as possible, on any Interest Payment Date, and shall be redeemed by the Trustee, from Prepayments deposited to the Redemption Account pursuant to Section 3.2 of the Master Indenture, plus amounts transferred from the Reserve Account pursuant to Section 3.6(c) of the Master Indenture, at the following redemption prices, expressed as a percentage of the principal amount to be redeemed, together with accrued interest to the redemption date: Redemption Dates Redemption Prices Any Interest Payment Date through March 1, 20__ 103% September 1, 20__ and March 1, 20__ 102 September 1, 20__ and March 1, 20__ 101 September 1, 20__ and Interest Payment Dates thereafter 100 The District shall give written notice to the Trustee of its intention to redeem Series 2024 Bonds pursuant to this subsection, the redemption date, and the principal amount of the Series 2024 Bonds of each maturity to be redeemed at least 45 but no more than 90 days prior to the redemption date, or by such later date as is acceptable to the Trustee, in its sole discretion. (d) Purchase In Lieu of Redemption. As provided in Section 3.5(d) of the Master Indenture and Section 2.06(b)(ii), as applicable, in lieu or partially in lieu of any optional Page 848 of 1128 -7- 2837234 redemption, extraordinary redemption or mandatory sinking fund redemption as described above, moneys deposited in the Redemption Account, other than Prepayments, may be used to purchase Outstanding Series 2024 Bonds. Such purchases of Series 2024 Bonds may be made by the District at public or private sale as and when and at such prices as the District may in its discretion determine but only at prices (including brokerage or other expenses) not more than par plus accrued interest, plus, in the case of moneys set aside for an optional redemption or an extraordinary redemption, the premium applicable at the next following call date. Any accrued interest payable upon the purchase of Bonds may be paid from the amount reserved in the Interest Account of the Special Tax Fund for the payment of interest on the next following Interest Payment Date. All Series 2024 Bonds purchased pursuant to this subsection shall be cancelled pursuant to Section 10.1 of the Master Indenture. (e) General Redemption Provisions. Except with respect to the foregoing, the provisions set forth in Sections 4.2 through 4.5 of the Master Indenture shall apply to the Series 2024 Bonds. SECTION 2.07. Application of Proceeds of Series 2024 Bonds. On the Closing Date, the Trustee shall receive proceeds from the sale of the Series 2024 Bonds in the amount of $__ (representing the aggregate principal amount of the Series 2024 Bonds, less a net original issue discount of $__, and less an underwriter’s discount of $__. Immediately upon receipt, the Trustee shall set aside and deposit or transfer such proceeds as follows: (a) $___ shall be deposited in the Reserve Account of the Special Tax Fund the amount of $____ (being the Reserve Requirement for all Outstanding Bonds); (b) $__ shall be deposited in the Series 2024 Improvement Account of the Improvement Fund; (c) $__ shall be deposited in the Series 2024 Costs of Issuance Account of the Costs of Issuance Fund to pay the Costs of Issuance of the Bonds; (d) $___ shall be deposit in the 2024 Bonds Capitalized Interest Subaccount (which subaccount the Trustee shall establish) of the Interest Account of the Special Tax Fund to pay interest on the Series 2024 Bonds through and including September 1, 2024. The Trustee may, in its discretion, establish a temporary fund or account in its books and records to facilitate such transfers. ARTICLE III MISCELLANEOUS SECTION 3.01. Executions in Counterparts. This First Supplemental Indenture may be executed in any number of counterparts, each of such counterparts shall for all purposes be deemed to be an original; and all such counterparts, as many of them as the District and the Trustee shall preserve undestroyed, shall together constitute but one and the same instrument. Page 849 of 1128 -8- 2837234 IN WITNESS WHEREOF, CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021- 1 (UNIVERSITY PARK) has caused this First Supplemental Indenture to be signed by the Mayor of the City of Palm Desert, acting as the legislative body of the District and attested thereto by the City Clerk of the City of Palm Desert, and U.S. Bank Trust Company, National Association, in token of its acceptance of the trust created hereunder, has caused this First Supplemental Indenture to be signed in its corporate name by its officer identified below, all as of the day and year first above written. CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) By: Mayor of the City of Palm Desert, California ATTEST: City Clerk of the City of Palm Desert, California U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee By: Its: Authorized Officer Page 850 of 1128 A-1 2837234 EXHIBIT A FORM OF SPECIAL TAX BOND, SERIES 2024 Unless this Series 2024 Bond is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the District or the Trustee for registration of transfer, exchange, or payment, and any Series 2024 Bond issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. R-__ $___________ UNITED STATES OF AMERICA STATE OF CALIFORNIA COUNTY OF RIVERSIDE CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) SPECIAL TAX BOND, SERIES 2024 INTEREST RATE MATURITY DATE DATED DATE CUSIP ____% September 1, ____ ___, 2024 ___________ REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: _____________________________________ DOLLARS CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) (the “District”) which was formed by the City of Palm Desert (the “City”) and is situated in the County of Riverside, State of California, FOR VALUE RECEIVED, hereby promises to pay, solely from certain amounts held under the Indenture (as hereinafter defined), to the Registered Owner named above, or registered assigns, on the Maturity Date set forth above, unless redeemed prior thereto as hereinafter provided, the Principal Amou nt set forth above, and to Page 851 of 1128 A-2 2837234 pay interest on such Principal Amount from the Interest Payment Date (as hereinafter defined) next preceding the date of authentication hereof, unless (i) the date of authentication is an Interest Payment Date in which event interest shall be payable from such date of authentication, (ii) the date of authentication is after a Record Date (as hereinafter defined) but prior to the immediately succeeding Interest Payment Date, in which event interest shall be payable from the Interest Payment Date immediately succeeding the date of authentication, or (iii) the date of authentication is prior to the close of business on the first Record Date in which event interest shall be payable from the Dated Date set forth above. Notwithstanding the foregoing, if at the time of authentication of this Series 2024 Bond interest is in default, interest on this Series 2024 Bond shall be payable from the last Interest Payment Date to which the interest has been paid or made available for payment or, if no interest has been paid or made available for payment, interest on this Series 2024 Bond shall be payable from the Dated Date set forth above. Interest will be paid semiannually on March 1 and September 1 (each, an “Interest Payment Date”), commencing [September 1, 2024], at the Interest Rate set forth above, until the Principal Amount hereof is paid or made available for payment. The principal of and premium, if any, on this Series 2024 Bond are payable to the Registered Owner hereof in lawful money of the United States of America upon presentation and surrender of this Series 2024 Bond at the Principal Office of the Trustee (as such term is defined in the Bond Indenture), initially U.S. Bank Trust Company, National Association (the “Trustee”). Interest on this Series 2024 Bond shall be paid by check of the Trustee mailed by first class mail, postage prepaid, or in certain circumstances described in the Indenture by wire transfer to an account within the United States of America, to the Registered Owner hereof as of the close of business on the fifteenth day of the month preceding the month in which the Interest Payment Date occurs (the “Record Date”) at such Registered Owner’s address as it appears on the registration books maintained by the Trustee. This Series 2024 Bond is one of a duly authorized issue of “City of Palm Desert Community Facilities District No. 2021-1 (University Park) Special Tax Bonds, Series 2024” (the “Series 2024 Bonds”) issued in the aggregate principal amount of $[principal amount] pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being Sections 53311, et seq., of the California Government Code (the “Act”) for the purpose of financing certain public facilities, funding a reserve account, and paying certain costs related to the issuance of the Series 2024 Bonds. The issuance of the Series 2024 Bonds and the terms and conditions thereof are provided for by a resolution adopted by the City Council of the City acting in its capacity as the legislative body of the District (the “Legislative Body”) on February 15, 2024 and a Bond Indenture dated as of July 1, 2021 (the “Master Indenture”), as amended and supplemented by a First Supplemental Indenture, dated as of [March] 1, 2024, by and between the District and the Trustee executed in connection therewith (the Master Indenture, as so amended and supplemented, and as the same may be further amended and supplemented from time to time in accordance with the terms thereof, the “Indenture”), and this reference incorporates the Indenture herein, and by acceptance hereof the Registered Owner of this Series 2024 Bond assents to said terms and conditions. The Indenture is executed under and Page 852 of 1128 A-3 2837234 this Series 2024 Bond is issued under, and both are to be construed in accordance with, the laws of the State of California. Pursuant to the Act and the Indenture, the principal of, premium, if any, and interest on this Series 2024 Bond are payable solely from the portion of the annual special taxes authorized under the Act to be levied and collected within the District (the “Special Taxes”) and certain other amounts pledged to the repayment of the Series 2024 Bonds as set forth in the Indenture. Any amounts for the payment hereof shall be limited to the Special Taxes pledged and collected or foreclosure proceeds received following a default in payment of the Special Taxes and other amounts deposited to the Special Tax Fund (other than the Administrative Expenses Account therein) established under the Indenture, except to the extent that other provision for payment has been made by the Legislative Body, as may be permitted by law. The District has covenanted for the benefit of the owners of the Series 2024 Bonds that under certain circumstances described in the Indenture it will commence and diligently pursue to completion foreclosure proceedings in the event of delinquencies of Special Tax in stallments levied for payment of principal and interest on the Series 2024 Bonds. The Series 2024 Bonds maturing on or before September 1, 20__ are not subject to optional redemption prior to maturity. The Series 2024 Bonds maturing on or after September 1, 20__ shall be subject to call and redemption prior to maturity and may be redeemed, at the option of the District, from any source of funds on any date on or after September 1, 20__ in whole, or in part, from such maturities as are selected by the Distr ict and by lot within a maturity, at the following redemption prices, expressed as a percentage of the principal amount to be redeemed, together with accrued interest to the redemption date: Redemption Dates Redemption Prices September 1, 20__ through August 31, 20__ 103% September 1, 20__ through August 31, 20__ 102 September 1, 20__ through August 31, 20__ 101 September 1, 20__ and any date thereafter 100 The Series 2024 Bonds maturing on September 1, 20__ and September 1, 20__ (the “Series 2024 Term Bonds”) shall be called before maturity and redeemed, from Sinking Fund Payments deposited into the Redemption Account, beginning on September 1, 20__ and September 1, 20__, respectively, and on each September 1 thereafter prior to maturity, in accordance with the schedule of Sinking Fund Payments set forth in the Indenture at a redemption price equal to the principal amount thereof, plus accrued interest to the redemption date, without premium. The Series 2024 Bonds are subject to extraordinary redemption as a whole, or in part on a pro rata basis among maturities, on any Interest Payment Date, and shall be redeemed by the Trustee, from Prepayments of Special Taxes deposited to the Redemption Account, plus amounts transferred from the Reserve Account in connection with such transfers, at the Page 853 of 1128 A-4 2837234 following redemption prices expressed as a percentage of the principal amount to be redeemed, together with accrued interest to the redemption date: Redemption Dates Redemption Prices Notice of redemption with respect to the Series 2024 Bonds to be redeemed shall be mailed to the registered owners thereof not less than thirty (30) nor more than forty -five (45) days prior to the redemption date by first class mail, postage prepaid, to the addresses set forth in the registration books. Neither a failure of the Registered Owner hereof to receive such notice nor any defect therein will affect the validity of the proceedings for redemption. All Series 2024 Bonds or portions thereof so called for redemption will cease to accrue interest on the specified redemption date, provided that funds for the redemption are on deposit with the Trustee on the redemption date. Thereafter, the registered owners of such Series 2024 Bonds shall have no rights except to receive payment of the redemption price upon the surrender of the Series 2024 Bonds. This Series 2024 Bond shall be registered in the name of the Registered Owner hereof, as to both principal and interest, and the District and the Trustee may treat the Registered Owner hereof as the absolute owner for all purposes and shall not be affected by any notice to the contrary. The Series 2024 Bonds are issuable only in fully registered form in the denomination of $5,000 or any integral multiple thereof and may be exchanged for a like aggregate principal amount of Series 2024 Bonds of other authorized denominations of the same issue and maturity, all as more fully set forth in the Indenture. This Series 2024 Bond is transferable by the Registered Owner hereof, in person or by his attorney duly authorized in writing, at the Principal Office of the Trustee, but only in the manner, subject to the limitations and upon payment of the charges provided in the Indenture, upon surrender and cancellation of this Series 2024 Bond. Upon such transfer, a new registered Series 2024 Bond of authorized denomination or denominations for the same aggregate principal amount of the same issue and maturity will be issued to the transferee in exchange therefor. The Trustee shall not be required to register transfers or make ex changes of (i) any Series 2024 Bonds for a period of fifteen (15) days next preceding any selection of the Series 2024 Bonds to be redeemed, or (ii) any Series 2024 Bonds chosen for redemption. The rights and obligations of the District and of the registered owners of the Series 2024 Bonds may be amended at any time, and in certain cases without notice to or the consent of the registered owners, to the extent and upon the terms provided in the Indenture. Page 854 of 1128 A-5 2837234 THE SERIES 2024 BONDS DO NOT CONSTITUTE OBLIGATIONS OF THE CITY OF PALM DESERT OR OF THE DISTRICT FOR WHICH THE CITY OF PALM DESERT OR THE DISTRICT IS OBLIGATED TO LEVY OR PLEDGE, OR HAS LEVIED OR PLEDGED, GENERAL OR SPECIAL TAXES, OTHER THAN THE SPECIAL TAXES REFERENCED HEREIN. THE SERIES 2024 BONDS ARE LIMITED OBLIGATIONS OF THE DISTRICT PAYABLE FROM THE PORTION OF THE SPECIAL TAXES AND OTHER AMOUNTS PLEDGED UNDER THE INDENTURE BUT ARE NOT A DEBT OF THE CITY OF PALM DESERT, THE STATE OF CALIFORNIA OR ANY OF ITS POLITICAL SUBDIVISIONS WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY LIMITATION OR RESTRICTION. This Series 2024 Bond shall not become valid or obligatory for any purpose until the certificate of authentication and registration hereon endorsed shall have been dated and signed by the Trustee. IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and things required by law to exist, happen and be performed precedent to and in the issuance of this Series 2024 Bond do exist, have happened and have been performed in due time, form and manner as required by law, and that the amount of this Series 2024 Bond, together with all other indebtedness of the District, does not exceed any debt limit prescribed by the laws or Constitution of the State of California. IN WITNESS WHEREOF, City of Palm Desert Community Facilities District No. 2021-1 (University Park) has caused this Series 2024 Bond to be dated as of ____, 2024, to be signed on behalf of the District by the Mayor of the City by his manual signature and attested by the manual signature of the City Clerk of the City. CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) Mayor of the City of Palm Desert, California ATTEST: City Clerk of the City of Palm Desert, California Page 855 of 1128 A-6 2837234 [FORM OF TRUSTEE’S CERTIFICATE OF AUTHENTICATION AND REGISTRATION] This is one of the Series 2024 Bonds described in the within-mentioned Indenture which has been registered on the Bond registration books. Dated: [Closing Date], 2024 U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee By: Its: Authorized Signatory [FORM OF ASSIGNMENT] For value received the undersigned hereby sell(s), assign(s) and transfer(s) unto (Name, Address, and Tax Identification or Social Security Number of Assignee) the within-mentioned Series 2024 Bond and hereby irrevocably constitute(s) and appoint(s) _________________________________________________________________________ attorney, to transfer the same on the Registration Books of the Trustee with full power of substitution in the premises. Dated: Signature Guaranteed: Note: Signature must be guaranteed by a member of an institution which is a participant in the Securities Transfer Agent Medallion Program (STAMP) or other similar program. Note: The signature(s) on this Assignment must correspond with the name(s) as written on the face of the within Series 2024 Bond in every particular without alteration or enlargement or any change whatsoever. Page 856 of 1128 A-1 2837234 Page 857 of 1128 Page 858 of 1128 29.PRELIMINARY OFFICIAL STATEMENT DATED _____________, 2024 NEW ISSUE—BOOK-ENTRY ONLY NO RATING In the opinion of Richards, Watson & Gershon, A Professional Corporation, Bond Counsel, under existing law (i) assuming conti nuing compliance with certain covenants and the accuracy of certain representations, interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax; however, for tax years beginning after December 31, 2022, interest on the Bonds included in adjusted financial statement income of certain corporations is not excluded from the federal corporate alternative minimum tax, and (ii) interest on the Bonds is exempt from State of California personal income taxes. Bond Counsel expresses no opinion as to any other tax consequences regarding the Bonds. For a more complete d iscussion of the tax aspects, see “TAX MATTERS” herein. $__________* CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) SPECIAL TAX BONDS, SERIES 2024 Dated: Delivery Date Due: September 1, as shown on inside cover page The City of Palm Desert Community Facilities District No. 2021-1 (University Park) Special Tax Bonds, Series 2024 (the “Bonds”) are being issued by the City of Palm Desert Community Facilities District No. 2021-1 (University Park) (the “District”) to: (i) finance the acquisition of certain public improvements needed with respect to the development of property located within the District, including public improvements to be owned by the City of Palm Desert (the “City”) and water and sewer facilities to be owned and operated by the Coachella Valley Water District (“CVW D”); (ii) fund a reserve account for the Bonds; (iii) pay costs of issuance for the Bonds; and (iv) fund capitalized interest to pay debt service on the Bonds through and including September 1, 2024. The Bonds are authorized to be issued pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (Section 53311 et seq. of the Government Code of the State of California) (the “Act”), and pursuant to that certain Bond Indenture, dated as of July 1, 2021 (the “Original Indenture”), as supplemented by the First Supplemental Indenture, dated as of [March 1, 2024] (the “First Supplemental Indenture” together with the “Original Indenture” is referred to as the “Indenture”), by and between the District and U.S. Bank Trust Company, National As sociation, as trustee (the “Trustee”). The Bonds are payable from Net Taxes (as defined herein) derived from a certain annual Special Tax (as defined herein) to be levied on taxable parcels within the District and from certain other funds pledged under the Indenture, all as further described herein. The Sp ecial Tax is to be levied according to the rate and method of apportionment (the “Rate and Method”) approved by the City Council of the City and the qualified electors within the District. See the caption “SOURCES OF PAYMENT FOR THE BONDS — Special Taxes,” “THE DISTRICT — Formation Proceedings,” and “APPENDIX A — RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX.” The Bonds will be issued in fully registered form and when issued will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”). Individual purchases of the Bonds will be in book-entry form only and may be made in principal amounts of authorized denominations of $5,000 or any integral multiple thereof (“Authorized Denominations”). See “THE BONDS — General Provisions.” Purchasers of Bonds will not receive certificates representing their beneficial ownership of the Bonds but will receive credit balances on the books of their respective nominees. The Bonds will not be transferable or exchangeable except for transfer to another nominee of DTC or as otherwise described herein. Interest on the Bonds will be payable on each March 1 and September 1, commencing [September 1, 2024]. Principal of and interest on the Bonds will be paid by the Trustee to DTC for subsequent disbursement to DTC Participants, who will remit such payments to the Beneficial Owners of the Bonds. NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE CITY, THE COUNTY OF RIVERSIDE, THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE BONDS. EXCEPT FOR THE NET TAXES, NO OTHER REVENUES OR TAXES ARE PLEDGED TO THE PAYMENT OF THE BONDS. THE BONDS ARE NOT GENERAL OR SPECIAL OBLIGATIONS OF THE CITY OR GENERAL OBLIGATIONS OF THE DISTRICT BUT ARE LIMITED OBLIGATIONS OF THE DISTRICT PAYABLE SOLELY FROM NET TAXES AND OTHER AMOUNTS HELD UNDER THE INDENTURE AS MORE FULLY DESCRIBED HEREIN. The Bonds are subject to optional redemption, extraordinary redemption and mandatory sinking fund redemption prior to maturit y as set forth herein. See the caption “THE BONDS — Redemption.” EACH PROSPECTIVE INVESTOR SHOULD CONSIDER ITS FINANCIAL CONDITION AND THE RISKS INVOLVED TO DETERMINE THE SUITABILITY OF INVESTING IN THE BONDS. The property subject to the lien of Special Taxes within the District consists of approximately 175 acres. The developer, University Park Investor, LLC (the “Developer”) plans on developing the District property in five areas, with 1,069 projected residential units. The estimated completion date for development is the end of 2026. See “SPECIAL RISK FACTORS — Construction Risks, and — Property Values” for a discussion of certain risk factors that should be considered, in addition to the other matters set forth herein, in evaluating the investment quality of the Bonds. This cover page contains information for general reference only. It is not a complete summary of the Bonds. Investors should read the entire Official Statement to obtain information essential to making an informed investment decision. THIS COVER PAGE CONTAINS CERTAIN INFORMATION FOR GENERAL REFERENCE ONLY. IT IS NOT INTENDED TO BE A SUMMARY OF THE SECURITY OR TERMS OF THIS ISSUE. INVESTORS ARE ADVISED TO READ THE ENTIRE OFFICIAL STATEMENT TO OBTAIN INFORMATION ESSENTIAL TO THE MAKING OF AN INFORMED INVESTMENT DECISION. The Bonds are offered when, as and if issued and accepted by the Underwriter, subject to approval as to their legality by Ric hards, Watson & Gershon, A Professional Corporation, Los Angeles, California, Bond Counsel, and subject to certain other conditions. Certain legal matters will be passed on for the City and the District by Best Best & Krieger LLP, Indian Wells, California, City Attorney, and for the District by Best Best & Krieger LLP, Riverside, California, Disclosure Counsel, for the Underwriter by Kutak Rock LLP, Irvine, California, and for the Trustee by its counsel. It is anticipated that the Bonds in book-entry form will be available for delivery on or about [March 20, 2024]. [INSERT PIPER LOGO] Dated: ________, 2024 * Preliminary, subject to change Page 859 of 1128 $________† CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) SPECIAL TAX BONDS, SERIES 2024 MATURITY SCHEDULE Base CUSIP No.† _______ Maturity Date (September 1) Principal Amount Interest Rate Yield Price CUSIP†© $______ _______% Term Bonds due September 1, 20__ Yield: ______% Price: ______ CUSIP No.† ____ $______ _______% Term Bonds due September 1, 20__ Yield: ______% Price: ______ CUSIP No.† ____ $______ _______% Term Bonds due September 1, 20__ Yield: ______% Price: ______ CUSIP No.† ____ † Preliminary, subject to change † CUSIP® is a registered trademark of the American Bankers Association. CUSIP data herein is provided by CUSIP Global Services, which is owned by FactSet Research Systems Inc. (“FactSet”). FactSet will manage the CUSIP system on behalf of the American Banker s Association. This information is not intended to create a database and does not serve in any way as a substitute for the CUSIP Services Bureau. CUSIP numbers have been assigned by an independent company not affiliated with the City, the District or the Underwriter and are included solely for the convenience of the registered owners of the applicable Bonds. None of the City, the District or the Underwriter is responsible for the selection or uses of these CUSIP numbers, and no representation is made as to their correctness on the applicable Bonds or as included herein. The CUSIP number for a specific maturity is subject to being changed after the issuance of the Bonds as a result of various subsequent actions including, but not limited to, a refunding in whole or in part or as a result of the procurement of secondary market portfolio insurance or other similar enhancement by investors that is appl icable to all or a portion of certain maturities of the Bonds. Page 860 of 1128 CITY OF PALM DESERT CITY COUNCIL Karina Quintanilla, Mayor Kathleen Kelly, Councilmember Evan Trubee, Councilmember Gina Nestande, Councilmember Jan Harnik, Mayor Pro Tem STAFF Todd Hileman, City Manager Veronica Chavez, City Treasurer/Director of Finance Anthony Mejia, City Clerk Best Best & Krieger LLP, City Attorney MUNICIPAL ADVISOR Del Rio Advisors, LLC Modesto, California BOND COUNSEL Richards, Watson & Gershon, A Professional Corporation Los Angeles, California DISCLOSURE COUNSEL Best Best & Krieger LLP Riverside, California SPECIAL TAX CONSULTANT Willdan Financial Services Temecula, California APPRAISER Capital Realty Analysts San Marcos, California TRUSTEE U.S. Bank Trust Company, National Association Los Angeles, California Page 861 of 1128 Except where otherwise indicated, all information contained in this Official Statement has been provided by the City and the District. No dealer, broker, salesperson or other person has been authorized by the City, the District, the Trustee or the Underwriter to give any information or to make any representations in connection with the offer or sale of the Bonds other than those contained in this Official Statement and, if given or made, such other information or representations must not be relied upon as having been authorized by the City, the District, the Trustee or the Underwriter. This Official Statem ent does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Bonds by a person i n any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale. This Official Statement, deemed final by the City and the District, is not to be construed as a contract with the purchasers or Owners of the Bonds. Statements contained in this Official Statement which involve estimates, forecasts or matters of opinion, whether or not exp ressly so described in this Official Statement, are intended solely as such and are not to be construed as representations of fact. This Official Statement, including any supplement or amendment to this Official Statement, is intended to be deposited with the Electronic Municipal Market Access System of the Municipal Securities Rulemaking Board, which can be found at www.emma.msrb.org. The information set forth in this Official Statement which has been obtained from third party sources is believed to be reliable but is not guaranteed as to accuracy or completeness by the City or the District. The information and expressions of opinion in this Official Statement are subject to change without notice, and neither the delivery of this Official Stateme nt nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City or the District or any other parties described in this Official Statement since the date of this Official Statement. All summaries of the Trustee Agreement or other documents are made subject to the provisions of such documents respectively and do not purport to be complete statements of any or all of such provisions. Reference is made by this Offici al Statement to such documents on file with the City for further information. While the City maintains an Internet website for various purposes, none of the information on that website is incorporated by reference in this Official Statement or intended to assist investors in making any investment decision or to provide any continuing information with respect to the Bonds or any other bonds or obligations of the City. Any such information that is inconsistent with the information set forth in this Official Statement should be disregarded. The Underwriter has provided the following sentence for inclusion in this Official Statement: The Underwriter has reviewed the information in this Official Statement in accordance with, and as a part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. Certain statements included or incorporated by reference in this Official Statement constitute “forward looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Sec urities Act of 1933, as amended. Such statements are generally identifiable by the terminology used such as “plan,” “expect,” “estimate,” “project,” “budget” or other similar words. Such forward -looking statements include, but are not limited to, certain statements contained in the information under the caption “THE DISTRICT.” THE ACHIEVEMENT OF CERTAIN RESULTS OR OTHER EXPECTATIONS CONTAINED IN SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS DESCRIBED TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. THE CITY DOES NOT PLAN TO ISSUE ANY UPDATES OR REVISIONS TO THE FORWARD-LOOKING STATEMENTS SET FORTH IN THIS OFFICIAL STATEMENT. IN CONNECTION WITH THE OFFERING OF THE BONDS, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF SUCH BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, IN RELIANCE UPON AN EXEMPTION CONTAINED IN SUCH ACT. THE BONDS HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES LAWS OF ANY STATE. Page 862 of 1128 INTRODUCTION The District Investor Suitability Sources of Payment for the Bonds Appraisal Report Description of the Bonds Tax Exemption Professionals Involved in the Offering Continuing Disclosure Parity Bonds Bond Owners’ Risks Other Information ESTIMATED SOURCES AND USES OF FUNDS PLAN OF FINANCE THE BONDS Authority for Issuance General Provisions Debt Service Schedule Redemption Registration, Transfer and Exchange SOURCES OF PAYMENT FOR THE BONDS Limited Obligations Special Taxes Covenant for Superior Court Foreclosure Special Tax Fund Reserve Account of the Special Tax Fund District Not Included In Teeter Plan Parity Bonds Estimated Combined Debt Service Schedule THE DISTRICT General Description of the District Formation Proceedings Description of Authorized Facilities Direct and Overlapping Debt Expected Tax Burden Appraisal Report Estimated Appraised Value-to-Lien Ratios Largest Taxpayer Increasing Mortgage Interest Rates Impact of Economic Conditions on the Development in the District PROPERTY OWNERSHIP AND THE DEVELOPMENT Property Ownership The Developer Proposed Development and Current Development Status SPECIAL RISK FACTORS Concentration of Ownership Risks of Real Estate Secured Investments Generally Construction Risks Insufficiency of Special Tax Revenues Property Values Exempt Properties Climate Change Geologic, Topographic and Climatic Conditions Flood Zone Drought Hazardous Substances Cybersecurity Depletion of Reserve Account Enforcement Delays – Bankruptcy Page 863 of 1128 Increasing Mortgage Interest Rates Impact of Economic Conditions on the Development in the District FDIC/Federal Government Interests in Properties Direct and Overlapping Indebtedness Effect of Parity Bonds on Credit Quality Payment of Special Taxes is not a Personal Obligation of the Property Owners No Acceleration Provision Limited Obligations Ballot Initiatives Proposition 218 Litigation with Respect to Community Facilities Districts Loss of Tax Exemption No Ratings – Limited Secondary Market Limitations on Remedies Potential Early Redemption of Bonds from Prepayments District Not Included in Teeter Plan CONTINUING DISCLOSURE TAX EXEMPTION LEGAL OPINION ABSENCE OF LITIGATION NO RATING UNDERWRITING FINANCIAL INTERESTS MUNICIPAL ADVISOR MISCELLANEOUS APPENDIX A — RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX A-1 APPENDIX B — FORM OF OPINION OF BOND COUNSEL B-1 APPENDIX C — APPRAISAL REPORT ................ D-1 APPENDIX D — SUMMARY OF THE INDENTURED-1 APPENDIX E — FORMS OF DISTRICT CONTINUING DISCLOSURE AGREEMENT AND DEVELOPER CONTINUING DISCLOSURE CERTIFICATE E-1 APPENDIX F — BOOK-ENTRY ONLY SYSTEM F-1 APPENDIX G — GENERAL ECONOMIC DATA CONCERNING THE CITY OF PALM DESERT AND THE COUNTY OF RIVERSIDE G-1 Page 864 of 1128 [INSERT VICINITY MAP] Page 865 of 1128 $_________* CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) SPECIAL TAX BONDS, SERIES 2024 INTRODUCTION This introduction is not a summary of this Official Statement. It is only a brief description of and guide to, and is qualified by, more complete and detailed information contained in the entire Official Statement, including the cover page and appendices hereto, and the documents summarized or described herein. A full review should be made of the entire Official Statement. The offering of the Bonds to potential investors is made only by means of the entire Official Statement. The purpose of this Official Statement, which includes the cover page, the table of contents and the attached appendices (collectively, the “Official Statement”), is to provide certain information concerning the issuance by City of Palm Desert Community Facilities District No. 2021-1 (University Park) (the “District”) of its Special Tax Bonds, Series 2024 in the aggregate principal amount of $__________‡ (the “Bonds”). The proceeds of the Bonds will be used to (i) finance the acquisition of certain public improvements needed with respect to the development of property located within the District, including public improvements to be owned by the City and water and sewer facilities to be owned and operated by the Coachella Valley Water District (“CVWD”) (ii) fund a reserve account for the Bonds; (iii) pay costs of issuance for the Bonds; and (iv) fund capitalized interest on the Bonds through and including September 1, 2024. The Bonds are authorized to be issued pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (Section 53311 et seq. of the Government Code of the State of California) (the “Act”), and a Bond Indenture, dated as of July 1, 2021 (the “Original Indenture”), as supplemented by a First Supplemental Indenture, dated as of [March 1, 2024] (the “First Supplement al Indenture” together with the “Original Indenture” are referred to as the “Indenture”), by and between the District and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”). The Bonds and Series 2021 Bonds (defined herein) are secured under the Indenture by a pledge of and lien upon Net Taxes (as such term is defined herein) and all moneys in the Special Tax Fund (other than the Administrative Expenses Account therein) as described in the Indenture. All capitalized terms used in this Official Statement and not defined have the meanings set forth in Appendix D. The District General. The City of Palm Desert (the “City”) is located in the County of Riverside (the “County”) within the area known as the Coachella Valley. The City is situated approximately midway between the cities of Indio and Palm Springs, approximately 117 miles east of Los Angeles, approximately 118 miles northeast of San Diego and approximately 515 miles southeast of San Francisco. The City covers an area of approximatel y 26 square miles and has a current population of approximately 50,615 . The City was incorporated in 1973 and is a charter city operating under a council-manager form of government. The District is located north of Frank Sinatra Drive, south of Gerald Ford Drive, west of Cook Street and east of Portola Avenue. The area is locally known as “University Park,” due to the location immediately west of the facilities and future facility expansion area of the satellite campus of California State University, San Bernardino and University of California at Riverside, at the northeast corner of Frank Sinatra Drive and Cook Street. ‡ Preliminary, subject to change Page 866 of 1128 9 The District consists of approximately 175 gross acres. As of January 1, 2024, the developer “University Park Investor, LLP” (“UPI” or “Developer”) developed 236 residential units on the District property, which are subject to the Special Tax (as defined herein). 105 of the 236 residential units are owned by individual homeowners. UPI owns the remaining 131 units. See “SPECIAL RISK FACTORS — Concentration of Ownership” herein. The development within the District (the “Project”) is made up of five separate project areas (“Area No. 1,” “Area No. 2,” “Area No. 3,” “Area No. 4” and “Area No. 5”) which are planned to include 1,069 units at buildout consisting of eight product types of for-sale single-family detached homes, for-sale attached townhomes and for-rent multifamily apartments. Area No. 1, consisting of 236 single-family lots, is currently under construction and has closed on 105 units, as of January 1, 2024. The lots in Area No. 3 consist of finished and nearly finished lots. CITY OF PALM DESERT CFD 2021-1(UNIVERSITY PARK) STATUS OF DEVELOPMENT AS OF DECEMBER 15, 20231 Development Area Total Number of Lots Units Completed, Sold and Closed Units Completed and Unclosed Homes Under Construction Homes in Escrow Finished Lots Building Permits Undeveloped Lots Area No. 12 236 102 10 43 6 81 155 236 Area No. 2 146 0 0 0 0 0 0 146 Area No. 33 169 0 0 0 0 169 0 169 Area No 4 182 0 0 0 0 0 0 182 Area No. 5 336 0 0 0 0 0 0 336 1,069 102 10 43 6 250 155 1,069 1Based on status of development as of the December 15, 2023 Date of Value. 2Area No. 1 lot counts do not tie out to 236 when adding horizontally due to overlap between categories. 3Although Area No. 3 has both finished and near-finished lots, this table considers all 169 lots as finished since all units are permit ready. The Project is being developed by UPI, the master developer within the District. UPI is managed by MVP Development California, LLC (“MVP”), who manages the day-to-day operations and development of the Project. On November 29, 2023, UPI sold all 169 lots in Area No. 3 to AG EHC II Toll CA 2 LP (“AG EHC”) for $34,304,000. [Toll Brothers, a ___________, (“Toll”) entered into a land banking arrangement on _____, 2024 (the “Land Banking Agreement”) with AG EHC for development of the property in Area No. 3. Pursuant to the Land Banking Agreement, Toll is responsible for payment of Special Taxes in Area No. 3.] See the captions “THE DISTRICT” and “PROPERTY OWNERSHIP AND THE DEVELOPMENT” for further information with respect to the District, UPI, Toll, and development within the District. Investor Suitability EACH PROSPECTIVE INVESTOR SHOULD CONSIDER ITS FINANCIAL CONDITION AND THE RISKS INVOLVED TO DETERMINE THE SUITABILITY OF INVESTING IN THE BONDS. See “SPECIAL RISK FACTORS – Concentration of Ownership, — Construction Risks, and — Property Values” for a discussion of certain risk factors that should be considered, in addition to the other matters set forth herein, in evaluating the investment quality of the Bonds. Investors should read the entire Official Statement to obtain information essential to making an informed investment decision. Sources of Payment for the Bonds Special Taxes. As used in this Official Statement, the term “Special Tax” means the annual special tax which has been authorized pursuant to the Act and the rate and method of apportionment (the “Rate and Method”) to be levied upon taxable property within the District. See the caption “SOURCES OF PAYMENT FOR THE Page 867 of 1128 10 BONDS — Special Taxes,” “THE DISTRICT — Formation Proceedings,” and “APPENDIX A — RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX.” See the caption “THE DISTRICT.” Under the Indenture, the District has pledged to repay the Bonds and any Parity Bonds (as defined herein) from the Special Tax revenues remaining after the payment of certain annual Administrative Expenses of the District (the “Net Taxes”) and from other amounts in the Special Tax Fund (other than the Administrative Expenses Account therein) established under the Indenture. The Special Taxes are the primary source of security for the repayment of the Bonds and any Parity Bonds. In the event that the Special Taxes are not paid when due, the only sources of funds available to pay the debt service on the Bonds and any Parity Bonds are amounts held by the Trustee in the Special Tax Fund, including amounts held in the Reserve Account therein, to the limited extent described in the Indenture. See the caption “SOURCES OF PAYMENT FOR THE BONDS — Reserve Account of the Special Tax Fund.” Foreclosure Proceeds. The District will covenant in the Indenture for the benefit of the owners of the Bonds and any Parity Bonds that it (i) will commence judicial foreclosure proceedings against any parcel with either (A) at least four (4) consecutive installments of delinquent Special Taxes or (B) delinquent Special Taxes in excess of $10,000 on any one parcel, in each instance by the December 1 following the close of each Fiscal Year in which such Special Taxes were due; and (ii) will commence judicial foreclosure proceedings against all parcels with delinquent Special Taxes by the December 1 following the close of each Fiscal Year in which it receives Special Taxes in an amount which is less than 95% of the total Special Tax levied for such Fiscal Year, and (iii) will diligently pursue such foreclosure proceedings until the delinquent Special Taxes are paid; provided, however, that the District may elect to defer foreclosure proceedings on any parcel so long as the amount on deposit in the Reserve Account is at least equal to the Reserve Requirement, and such delinquencies will not cause moneys in the Reserve Account to be withdrawn on the next succeeding Interest Payment Date. The District will covenant that it will deposit the net proceeds of any foreclosure in the Special Tax Fund. See the caption “SOURCES OF PAYMENT FOR THE BONDS — Special Taxes — Proceeds of Foreclosure Sales.” There is no assurance that the property within the District can be sold for the appraised values described herein, or for a price sufficient to pay the principal of and interest on the Bonds in the event of a default in payment of Special Taxes by the current or future landowners within the District. See the caption “SPECIAL RISK FACTORS— Property Values.” EXCEPT FOR THE NET TAXES, NO OTHER TAXES ARE PLEDGED TO THE PAYMENT OF THE BONDS. THE BONDS ARE NOT GENERAL OR SPECIAL OBLIGATIONS OF THE CITY OR GENERAL OBLIGATIONS OF THE DISTRICT, BUT ARE LIMITED OBLIGATIONS OF THE DISTRICT PAYABLE SOLELY FROM NET TAXES AND AMOUNTS HELD UNDER THE INDENTURE, AS MORE FULLY DESCRIBED HEREIN. Appraisal Report The District has obtained an appraisal of the land and existing improvements within the District (the “Appraised Property”) dated January 15, 2024, with a date of value as of December 15, 2023 (the “Appraisal Report”). The Appraisal was prepared by Capital Realty Analysts, San Marcos, California (the “Appraiser”). The Appraiser is of the opinion that, based upon the assumptions and conditions contained in the Appraisal Report, the market value of the Appraised Property, as of December 15, 2023 (the “Date of Value”), was $176,855,000. See “APPENDIX C — APPRAISAL REPORT.” Based on such appraised value of the Appraised Property and the estimated amount of land secured debt allocated to parcels within the District, the overall value-to-lien ratio of the property within the District is approximately ____*. See “THE DISTRICT — Appraisal Report, “APPENDIX C — APPRAISAL REPORT” and “SPECIAL RISK FACTORS — Direct and Overlapping Indebtedness.” * Preliminary, subject to change. Page 868 of 1128 11 Description of the Bonds The Bonds will be issued and delivered as fully registered Bonds, registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”), and will be available to actual purchasers of the Bonds (the “Beneficial Owners”) in “Authorized Denominations”, defined to mean any integral multiple of $5,000 in excess thereof, under the book-entry system maintained by DTC, only through brokers and dealers who are or act through DTC Participants as described herein. See “THE BONDS — General Provisions.” Beneficial Owners will not be entitled to receive physical delivery of the Bonds. In the event that the book -entry only system described herein is no longer used with respect to the Bonds, the Bonds will be registered and transferred in accordance with the Indenture. Principal of, premium, if any, and interest on the Bonds is payable by the Trustee to DTC. Disbursement of such payments to DTC Participants is the responsibility of DTC and disbursement of such payments to the Beneficial Owners is the responsibility of DTC Participants. See “APPENDIX F — BOOK-ENTRY ONLY SYSTEM.” The Bonds are subject to optional redemption, extraordinary redemption and mandatory sinking fund redemption prior to maturity as described herein. See the caption “THE BONDS — Redemption.” For a more complete description of the Bonds and the basic documentation pursuant to which they are being sold and delivered, see the caption “THE BONDS” and “APPENDIX D — SUMMARY OF THE INDENTURE.” Tax Exemption In the opinion of Richards, Watson & Gershon, A Professional Corporation, (“Bond Counsel”), under existing law (i) assuming continuing compliance with certain covenan ts and the accuracy of certain representations, interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax, however for tax years beginning after December 31, 2022, interest on the Bonds is taken into account in determining the annual adjusted financial statement income of certain corporations for the purpose for computing the alternative minimum tax imposed on certain corporations, and (ii) interest on the Bonds is exempt from State of California personal income taxes. Interest on the Bonds may be subject to certain federal income taxes imposed only on certain corporations. Bond Counsel expresses no opinion as to any other tax consequences regar ding the Bonds. See the caption “TAX EXEMPTION.” Set forth in Appendix B is the form of opinion of Bond Counsel expected to be delivered in connection with the issuance of the Bonds. For a more complete discussion of such opinion and certain tax consequenc es incident to the ownership of the Bonds, see the caption “TAX EXEMPTION.” Professionals Involved in the Offering U.S. Bank Trust Company, National Association, Los Angeles, California, will act as Trustee under the Indenture. Piper Sandler & Co. (the “Underwriter”) is the Underwriter of the Bonds. Certain proceedings in connection with the issuance and delivery of the Bonds are subject to the approval of Richards, Watson & Gershon, A Professional Corporation, Los Angeles, California, Bond Counsel to the District in connection with the issuance of the Bonds. Certain legal matters will be passed on for the City and the District by Best Best & Krieger LLP, Indian Wells, City Attorney, and Best Best & Krieger LLP, Riverside, California, Disclosure Counsel, for the Underwriter by Kutak Rock LLP, Irvine, California, and for the Trustee by its counsel. Other professional services have been performed by Del Rio Advisors, LLC, Modesto, California, as Municipal Advisor, Willdan Financial Services, Temecula, California, as Special Tax Consultant (the “Special Tax Consultant”), by and by Capital Realty Analysts, San Marcos, California, as Appraiser. Page 869 of 1128 12 For information concerning circumstances in which certain of the above-mentioned professionals, advisors, counsel and consultants may have a financial or other interest in the offering of the Bonds, see the caption “FINANCIAL INTERESTS.” Continuing Disclosure Pursuant to a District Continuing Disclosure Agreement to be executed by the District and Willdan Financial Services, as dissemination agent (the “District Continuing Disclosure Agreement”), the District will agree to provide, or cause to be provided, to the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access system (“EMMA”), maintained on the Internet at http://emma.msrb.org, certain annual financial information and operating data and notices of certain enumerated events. These covenants are being made in order to assist the Underwriter in complying with subsection (b)(5) of Rule 15c2-12 adopted by the Securities and Exchange Commission (“Rule 15c2-12”). Pursuant to a Developer Continuing Disclosure Certificate (the “Developer Continuing Disclosure Certificate”) to be executed by UPI and Toll, UPI and Toll will agree to provide, or cause to be provided, to EMMA certain information relating to the development of the Project on an annual basis and notices of certain enumerated events. See “CONTINUING DISCLOSURE” and “APPENDIX E — FORMS OF DISTRICT CONTINUING DISCLOSURE AGREEMENT AND DEVELOPER CONTINUING DISCLOSURE CERTIFICATE.” Parity Bonds In 2021, the City issued $15,200,000 City of Palm Desert Community Facilities District No. 2021 -1 (University Park) Special Tax Bonds, Series 2021 (the “Series 2021 Bonds”). The Bonds are being issued as Parity Bonds with respect to the Series 2021 Bonds. The District may issue additional indebtedness secured by the Net Taxes on a parity with the Bonds, which include the Series 2021 Bonds (“Parity Bonds”). See the caption “SOURCES OF PAYMENT FOR THE BONDS — Parity Bonds.” Other taxes and/or special assessments with liens equal in priority to the continuing lien of the Special Taxes may also be levied in the future on the property within the District, which could adversely affect the willingness of the landowners to pay the Special Taxes when due. See the captions “THE DISTRICT — Direct and Overlapping Debt” and “SPECIAL RISK FACTORS — Direct and Overlapping Indebtedness.” The District expects to issue additional series of bonds up to the remaining balance of bond authorization, which bonds are expected to be secured by Net Taxes on a parity with the Bonds. Such Parity Bonds are expected to be issued once property values within the District meet the minimum value-to-lien requirements required under the Parity Bonds test in the Indenture. See “SPECIAL RISK FACTORS – Effect of Parity Bonds on Credit Quality.” Bond Owners’ Risks Certain events could affect the ability of the District to pay the principal of and interest on the Bonds when due. See the caption “SPECIAL RISK FACTORS” for a discussion of certain factors which should be considered, in addition to other matters set forth herein, in evaluating an investment in the Bonds. The purchase of the Bonds involves risks, and the Bonds may not be appropriate investments for some types of investors. Other Information This Official Statement speaks only as of its date, and the information contained herein is subject to change. Brief descriptions of the Bonds and the Indenture are included in this Official Statement. Such descriptions and information do not purport to be comprehensive or definitive. All references herein to the Indenture, the Bonds and the Constitution and laws of the State, as well as the proceedings of the City Council, acting as the legislative body of the District, are qualified in their entirety by references to such documents, laws and proceedings, and Page 870 of 1128 13 with respect to the Bonds, by reference to the Indenture. Capitalized terms not otherwise defined in this Official Statement have the meanings set forth in Appendix D. Copies of the Indenture and other documents and information are available for inspection and copies may be obtained from the City, 73510 Fred Waring Drive, Palm Desert, California, 92260, Attention: City Clerk. ESTIMATED SOURCES AND USES OF FUNDS The following table sets forth the expected sources and uses of Bond proceeds. Sources of Funds Principal Amount of Bonds Plus: Original Issue Premium Less: Underwriter’s Discount Total Sources Uses of Funds: Improvement Fund Costs of Issuance Fund(1) Reserve Account of the Special Tax Fund [Capitalized Interest Account] Total Uses ________________________ (1) To pay costs of issuing the Bonds, including legal fees, printing costs, Municipal Advisor, Bond Counsel, Disclosure Counsel, Appraiser, Special Tax Consultant and Trustee fees. PLAN OF FINANCE A portion of the proceeds of the Bonds will used to finance certain public improvements necessary to meet the increased demands placed upon the public infrast ructure, the City, and CVWD as a result of the development of the property within the District. The following table lists the facilities expected to be financed with the proceeds of the Bonds and the estimated costs: Description of Facilities Estimated Costs Approved Phase 1 Facilities CVWD1-B(b) $ 2,127,400.81 CVWD – Reservoir Facility Payment #3 596,460.23 CVWD Sewer & Domestic Water #2 264,597.02 City Storm Drain #2, City Streets, Site Amenities, Misc. 4,339,903.27 Pending Phase 1 Facilities CVWD Payment for Well Site 2,500,000.00 Phase 2 Facilities CVWD – Phase 2 2,675,000.00 City of Palm Desert – Phase 2 4,790,639.00 Total $17,294,000.33 ___________________ Source: UPI Pursuant to a Special Domestic Water System Installation Agreement between UPI and CVWD (the “Water Installation Agreement”), UPI is required to contribute to the costs of CVWD’s construction of certain reservoir facilities, and invoicing for the reservoir facilities commenced in April 2021. UPI is invoiced monthly Page 871 of 1128 14 by CVWD for 14.5% of the cost of the reservoir facilities based on monthly invoices received by CVWD from its contractor. Construction of the reservoir facilities has been completed. THE BONDS Authority for Issuance The Act was adopted by the State Legislature to provide an alternate method of financing certain public capital facilities and services, especially in developing areas of the State. Once duly established by a local governmental agency, a community facilities district such as the District is itself a legally constituted governmental entity, with the governing board or legislative body of the local agency that established it constituting the legislative body of such community facilities district. Subject to approval by a two-thirds vote of a community facilities district’s qualified electors and compliance with the provisions of the Act, the legislative body may authorize the issuance of bonds for the community facilities district in order to finance certain public improvements, and the legislative body may levy and collect a special tax within such community facilities district to repay such indebtedness. The specific actions taken by the City Council to form the District, authorize the levy of the Special Tax on the Taxable Property (as defined in the Rate and Method) within the District and authorize the issuance of the Bonds are described under the caption “THE DISTRICT — Formation Proceedings.” General Provisions The Bonds will be dated their date of delivery and will bear interest at the rates per annum set forth on the inside cover page hereof, payable semiannually on each March 1 and September 1, commencing [September 1, 2024] (each, an “Interest Payment Date”), and will mature in the amounts and on the dates set forth on the inside cover page of this Official Statement. The Bonds will be issued in fully registered form in Authorized Denominations. Interest will be calculated on the basis of a 360-day year comprised of twelve 30-day months. Interest on any Bond will be payable from the Interest Payment Date next preceding the date of authentication of that Bond, unless: (i) such date of authentication is an Interest Payment Date, in which event interest will be payable from such date of authentication; (ii) the date of authentication is after the fifteenth day of the month preceding an Interest Payment Date, regardless of whether such day is a Business Day (each, a “Record Date”) but prior to the immediately succeeding Interest Payment Date, in which event interest will be payable from the Interest Payment Date immediately succeeding the date of authentication; or (iii) the date of authentication is prior to the close of business on the first Record Date, in which event interest will be payable from the dated date of the Bonds; provided, however, that if at the time of authentication of a Bond, interest on outstanding Bonds are in default, interest on such Bond will be payable from the last Interest Payment Date to which the interest has been paid or made available for payment, or, if no interest has been paid or made available for payment on such Bond, interest on such Bond will be payable from its dated date. Interest on any Bond will be paid to the person whose name appears as its owner in the registration books held by the Trustee on the close of business on the Record Date. Principal of, premium, if any, due upon redemption is payable upon presentation and surrender of the Bonds at the principal corporate trust office of the Trustee in Los Angeles, California. The Bonds will be issued as fully registered bonds and will be registered in the name of Cede & Co., as nominee of DTC. DTC will act as securities depository of the Bonds. Ownership interests in the Bonds may be purchased in book-entry form only in Authorized Denominations, as described more particularly above in this section. So long as DTC is the securities depository all payments of principal and interest on the Bonds will be made to DTC and will be paid to the Beneficial Owners in accordance with DTC’s procedures and the procedures of DTC’s Participants. See “APPENDIX F — BOOK-ENTRY-ONLY SYSTEM.” Page 872 of 1128 15 In the event the Bonds are not held in book-entry form, interest will be paid by check of the Trustee mailed by first class mail, postage prepaid, to the Bondowner at its address on the registration books kept by the Trustee. Pursuant to a written request prior to the Record Date of a Bondowner of at least $1,000,000 in aggregate principal amount of Bonds, payment will be made by wire transfer in immediately available funds to a designated account in the United States. The Bonds are not general or special obligations of the City but are special obligations of the District payable solely from Net Taxes and the other amounts held under the Indenture in the Special Tax Fund (other than the Administrative Expenses Account therein), including the Reserve Account therein. Neither the faith and credit nor the taxing power of the City, the District (except to the limited extent set forth in th e Indenture), the State or any political subdivision thereof is pledged to the payment of the Bonds. See the caption “SPECIAL RISK FACTORS — Limited Obligations.” Debt Service Schedule The following table presents the annualized debt service on the Bonds and Series 2021 Bonds (including sinking fund redemptions), assuming that there are no optional or extraordinary redemptions. See the caption “— Redemption” below. Year Ending September 1 Series 2021 Bonds Debt Service Bond Principal Bond Interest Total Debt Service 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 Total ___________________ Source: The Series 2021 Bond debt service is provided by the Trustee. The Bond debt service is provided by the Underwriter. Page 873 of 1128 16 Redemption Optional Redemption. The Bonds maturing on or before September 1, 20__ are not subject to optional redemption prior to maturity. The Bonds maturing on or after September 1, 20__ shall be subject to call and redemption prior to maturity and may be redeemed, at the option of the District, from any source of funds on any date on or after September 1, 20__ in whole, or in part, from such maturities as are selected by the District and by lot within a maturity, at the following redemption prices, expressed as a percentage of the principal amount to be redeemed, together with accrued interest to the redemption date:: Redemption Date Redemption Price September 1, 20__ through August 31, 20__ 103% September 1, 20__ through August 31, 20__ 102 September 1, 20__ through August 31, 20__ 101 September 1, 20__ and any date thereafter 100 In the event that the District elects to redeem Bonds as provided above, the District will give written notice to the Trustee of its election to so redeem, the redemption date and the principal amount of the Bonds of each maturity to be redeemed. The notice to the Trustee will be given at least 45 but no more than 90 days prior to the redemption date, or by such later date as is acceptable to the Trustee. Mandatory Sinking Fund Redemption. The Bonds maturing on September 1, 20__, September 1, 20__, and September 1, 20__ (collectively, the “Term Bonds”) will be called before maturity and redeemed, from the Sinking Fund Payments that have been deposited into the Redemption Account established by the Indent ure, on September 1, 20__, September 1, 20__, and September 1, 20__, respectively, and on each September 1 thereafter prior to maturity, in accordance with the schedules of Sinking Fund Payments set forth below. The Term Bonds so called for redemption will be selected by the Trustee by lot and will be redeemed at a redemption price for each redeemed Term Bond equal to the principal amount thereof, plus accrued interest to the redemption date, without premium, as follows: Term Bonds Maturing September 1, 20__ Sinking Fund Redemption Date (September 1) Sinking Payments (maturity) Page 874 of 1128 17 Term Bonds Maturing September 1, 20__ Sinking Fund Redemption Date (September 1) Sinking Payments (maturity) Term Bonds Maturing September 1, 20__ Sinking Fund Redemption Date (September 1) Sinking Payments (maturity) If the District purchases Term Bonds during the Fiscal Year immediately preceding one of the sinking fund redemption dates specified above, the District will notify the Trustee at least 45 days prior to the redemption date as to the principal amount purchased, and the amount purchased will be credited at the time of purchase to the next Sinking Fund Payment for the Term Bond so purchased, to the extent of the full principal amount of the purchase. All Term Bonds purchased will be cancelled pursuant to the Indenture. Purchase of Bonds in Lieu of Redemption. If during the Fiscal Year immediately preceding one of the redemption dates specified above, the District purchases Bonds, at least forty-five (45) days prior to the redemption date, the District shall notify the Trustee as to the principal amount purchased and the amount of Bonds so purchased shall be credited at the time of purchase, to the extent of the full principal amount thereof, to reduce such upcoming Sinking Fund Payment for the applicable maturity of the Bonds so purchased. All Bonds purchased pursuant to this subsection shall be cancelled pursuant to the Original Indenture. In the event of a partial optional redemption or extraordinary redemption of the Bonds, each of the remaining Sinking Fund Payments for such Bonds, as described above, will be reduced, as nearly as practicable, on a pro rata basis, in integral multiples of $5,000. Page 875 of 1128 18 Extraordinary Redemption from Special Tax Prepayments. The Bonds are subject to extraordinary redemption as a whole, or in part on a pro rata basis among maturities, on any Interest Payment Date, and shall be redeemed by the Trustee, from Prepayments deposited to the Redemption Account plus amounts transferred from the Reserve Account at the following redemption prices, expressed as a percentage of the principal amount to be redeemed, together with accrued interest to the redemption date: : Redemption Date Redemption Price Any Interest Date through March 1, 20__ 103% September 1, 20__ and March 1, 20__ 102 September 1, 20__ and March 1, 20__ 101 September 1, 20__ and any Interest Payment Date thereafter 100 The District will give written notice to the Trustee of its intention to redeem Bonds pursuant to extraordinary redemption, the redemption date, and the principal amount of the Bonds and of each maturity to be redeemed at least 45 but no more than 90 days prior to the redemption date, or by such later date as is acceptable to the Trustee, in its sole discretion. Notice of Redemption. So long as the Bonds are held in book-entry form, notice of redemption will be sent by the Trustee to DTC and not to the Beneficial Owners of the Bonds under the DTC book-entry only system. Neither the District nor the Trustee is responsible for notifying the Beneficial Owners, who are to be notified in accordance with the procedures in effect for the DTC book-entry system. See “APPENDIX F — BOOK-ENTRY ONLY SYSTEM.” The Trustee will give notice, in the name of the District, of the redemption of Bonds or Parity Bonds. Such notice of redemption will: (a) specify the CUSIP numbers (if any), the bond numbers and the maturity date or dates of the Bonds or Parity Bonds selected for redemption, except that where all of the Bonds or all of an issue of Parity Bonds are subject to redemption, or all of the Bonds or Parity Bonds of one maturity, are to be redeemed, the bond numbers of such issue need not be specified; (b) state the date fixed for redemption and surrender of the Bonds or Parity Bonds to be redeemed; (c) state the redemption price; (d) state the place or places where the Bonds or Parity Bonds are to be redeemed; (e) in the case of Bonds or Parity Bonds to be redeemed only in part, state the portion of such Bond or Parity Bond which is to be redeemed; (f) state the date of issue of the Bonds or Parity Bonds as originally issued; (g) state the rate of interest borne by each Bond or Parity Bond being redeemed; and (h) state any other descriptive information needed to identify accurately the Bonds or Parity Bonds being redeemed as specified by the Trustee. Such notice will further state that on the date fixed for redemption, there will become due and payable on each Bond or Parity Bond, or portion thereof called for redemption, the principal thereof, together with any premium, and interest accrued to the redemption date, and that from and after such date, interest thereon will cease to accrue and be payable. At least 30 days but no more than 45 days prior to the redemption date, the Trustee will mail a copy of such notice of redemption, by first class mail, postage prepaid, to the respective Owners thereof at their addresses appearing on the Bond Register; provided, however, so long as the Bonds are registered in the name of the Nominee, such notice shall be given in such manner as complies with the requirements of the Depository. The actual receipt by the Owner of any Bond or Parity Bond of notice of such redemption is not a condition precedent to redemption, and neither the failure to receive nor any defect in s uch notice will affect the validity of the proceedings for the redemption of such Bonds or Parity Bonds, or the cessation of interest on the redemption date. A certificate by the Trustee that notice of such redemption has been given as provided in the Indenture will be conclusive as against all parties and the Owner is not entitled to show that he or she failed to receive notice of such redemption. In addition to the foregoing notice, further notice will be given by the Trustee as set out below, but no defect in said further notice nor any failure to give all or any portion of such further notice will in any manner defeat the effectiveness of a call for redemption if notice thereof is given as above prescribed. Page 876 of 1128 19 Each further notice of redemption will be sent (i) not later than two (2) Business Days before the date that notice of redemption is mailed to the Bondowners pursuant to the Indenture, to the Depository in such electronic format and manner as specified by the Depository and to any other registered secu rities depositories (in such electronic format and manner as specified thereby) then in the business of holding substantial amounts of obligations of types comprising the Bonds and Parity Bonds as determined by Trustee, and (ii) not later than the date that notice of redemption is mailed to the Bondowners pursuant to the Indenture, to the Information Services in such electronic format and manner as specified by the Information Services. The District will have the right to rescind any optional redemption by written notice to the Trustee one (1) Business Day prior to the date fixed for redemption. Any notice of optional redemption will be cancelled and annulled if for any reason funds will not be or are not available on the date fixed for redemption for the payment in full of the Bonds or Parity Bonds then called for redemption, and such cancellation shall not constitute an Event of Default under the Indenture. The District and the Trustee shall have no liability to the Owners or any other party related to or arising from such rescission of redemption. The Trustee will mail notice of such rescission of redemption in the same manner as the original notice of redemption was sent. Upon the payment of the redemption price of any Bonds and Parity Bonds being redeemed, each check or other transfer of funds issued for such purpose will to the extent practicable bear the CUSIP number identifying, by issue and maturity, the Bonds and Parity Bonds being redeemed with the proceeds of such check or other transfer. Selection of Bonds for Redemption. If less than all of the Bonds or Parity Bonds Outstanding are to be redeemed, the Trustee will select the Bonds or Parity Bonds to be redeemed from all Outstanding Bonds or Parity Bonds of such Series or such given portion thereof not previously called for redemption, on a pro rata basis among the maturities (unless the maturity or maturities are otherwise specified in the Indenture or in writing by the District) and by lot within a maturity in any manner which the Trustee in its di scretion deems appropriate. For purposes of such selection, all Bonds or Parity Bonds of a denomination of more than $5,000 will be deemed to be comprised of separate $5,000 portions, and such portions will be treated as separate Bonds or Parity Bonds, as applicable, which may be separately redeemed. The procedure for the selection of Parity Bonds for redemption may be modified as set forth in the Supplemental Indenture for such Parity Bonds. The Trustee shall promptly notify the District in writing of the Bonds or Parity Bonds, or portions thereof, selected for redemption. Partial Redemption of Bonds or Parity Bonds. Upon surrender of any Bond or Parity Bond to be redeemed in part only, the District will execute and the Trustee will authenticate and deliver to the Bondowner, at the expense of the District, a new Bond or Bonds or a new Parity Bond or Parity Bonds of authorized denominations equal in aggregate principal amount to the unredeemed portion of the Bonds surrendered, with the same interest rate and the same maturity or, in the case of surrender of a Parity Bond, a new Parity Bond or Parity Bonds subject to the foregoing limitations. Effect of Notice and Availability of Redemption Money. Notice of redemption having been duly given, as provided in the Indenture, and the amount necessary for the redemption having been made available for that purpose and being available therefor on the date fixed for such redemption: (a) the Bonds and Parity Bonds, or portions thereof, designated for redemption will, on the date fixed for redemption, become due and payable at the redemption price thereof as provided in the Indenture or in any Supplemental Indenture with respect to Parity Bonds, anything in the Indenture or in the Bonds or the Parity Bonds to the contrary notwithstanding; (b) upon presentation and surrender thereof at the Principal Office of the Trustee, the redemption price of such Bonds and Parity Bonds will be paid to the Owners thereof; (c) as of the redemption date the Bonds or the Parity Bonds, or portions thereof so designated for redemption will be deemed to be no longer Outstanding and such Bonds or Parity Bonds, or portions thereof, will cease to bear further interest; and (d) as of the date fixed for redemption no Owner of any of the Bonds, Parity Bonds or portions thereof so designated for redemption will be entitled to any of the benefits of the Indenture or any Supplemental Indenture, or to any other rights, except with respect to payment of the redemption price and interest accrued to the redemption date from the amounts so made available. Page 877 of 1128 20 Registration, Transfer and Exchange Registration. The Trustee will keep or cause to be kept, at the Principal Office of the Trustee, sufficient books for the registration and transfer of the Bonds and any Parity Bonds which will upon reasonable prior notice be open to inspection by the District during all regular business hours, and, subject to the limitations set forth in the Indenture, upon presentation for such purpose, the Trustee will, under such reasonable regulations as it may prescribe, register or transfer or cause to be transferred on said Bond Register, Bonds and any Parity Bonds as provided in the Indenture. The District and the Trustee may treat the Owner of any Bond or Parity Bond whose name appears on the Bond Register as the absolute Owner of that Bond or Parity Bond for any and all purposes, and the District and the Trustee will not be affected by any notice to the contrary. The District and the Trustee may rely on the address of the Bondowner as it appears in the Bond Register for any and all purposes. It will be the duty of the Bondowner to give written notice to the Trustee of any change in the Bondowner’s address so that the Bond Register may be revised accordingly. Transfer or Exchange. Any Bond, or any portion thereof, may only be transferred in principal amounts equal to Authorized Denominations. No transfers of Bonds shall be required to be made (a) during a period of fifteen (15) days next preceding any selection of the Bonds or Parity Bonds to be redeemed, or (b) with respect to Bonds or Parity Bonds which have been selected for redemption. Subject to the limitations set forth in the following paragraph, the registration of any Bond or Parity Bond may, in accordance with its terms, be transferred upon the Bond Register by the person in whose name it is registered, in person or by his or her duly authorized attorney, upon surrender of such Bond or Parity Bond for cancellation at the Principal Office of the Trustee, accompanied by delivery of written instrument of transfer in a form acceptable to the Trustee and duly executed by the Bondowner or his or her duly authorized attorney. Bonds or Parity Bonds may be exchanged at the Principal Office of the Trustee for a like aggregate principal amount of Bonds or Parity Bonds for other authorized denominations of the same maturity and issue. The Trustee may not collect from the Owner any charge for any new Bond or Parity Bond issued upon any exchange or transfer, but will require the Bondowner requesting such exchange or transfer to pay any tax or other governmental charge required to be paid with respect to such exchange or transfer. Whenever any Bonds or Parity Bonds are surrendered for registration of transfer or exchange, the District will execute and the Trustee will authenticate and deliver a new Bond or Bonds or a new Parity Bond or Parity Bonds, as applicable, of the same issue and maturity, for a like aggregate principal amount; provided that the Trustee is not required to register transfers or make exchanges of: (i) Bonds or Parity Bonds for a period of 15 days next preceding any selection of the Bonds or Parity Bonds to be redeemed; or (ii) any Bonds or Parity Bonds chosen for redemption. SOURCES OF PAYMENT FOR THE BONDS Limited Obligations The Bonds are special, limited obligations of the District payable only from amounts pledged under the Indenture and from no other sources. The Net Taxes are the primary source of security for the repayment of the Bonds. Under the Indenture, the District has pledged to repay the Bonds from the Net Taxes (which are Special Tax revenues remaining after the payment of the annual Administrative Expenses in an amount not to exceed the Administrative Expenses Priority Amount (as defined in the Indenture)) and from amounts held in the Special Tax Fund (other than amounts held in the Administrative Expenses Account therein). Net Taxes consist of a portion of the Special Taxes levied on the Taxable Property in the District pursuant to the Rate and Method. The Indenture defines “Net Taxes” as Gross Taxes minus amounts set aside to pay Administrative Expenses not to exceed the Administrative Expenses Priority Amount. The term “Gross Taxes” means (i) the amount of all Special Taxes received by the District, Page 878 of 1128 21 together with (ii) the proceeds collected from the sale of property pursuant to the foreclosure provisions of the Indenture for the delinquency of such Special Taxes remaining after the payment of all costs related to such foreclosure actions. The Administrative Expenses Priority Amount is equal to $50,000 per Bond Year, escalating by 2% each Bond Year commencing July 1, 2022. In the event that the Special Tax revenues are not received when due, the only sources of funds available to pay the debt service on the Bonds are the proceeds collected from the sale of property pursuant to the foreclosure provisions of the Indenture for the delinquency of such Special Taxes remaining after the payment of all costs related to such foreclosure actions, and amounts held by the Trustee in the Special Tax Fund (other than the Administrative Expenses Account therein), including amounts held in the Reserve Account therein, for the exclusive benefit of the Owners of the Bonds. As described in more detail under “— Special Tax Fund” below, the Trustee will transfer the Special Taxes on deposit in the Special Tax Fund to the various specified accounts and funds established and held by the Trustee under the Indenture in a specified order of priority, in certain amounts, and at certain specified times during each Bond Year. Following the deposits specified in the Indenture to the Administrative Expenses Account, the Interest Account, the Principal Account, the Redemption Account, and the Reserve Account of the Special Tax Fund, remaining Special Taxes (if any), are transferred to the Rebate Fund and the Surplus Fund. Net Taxes deposited in the Rebate Fund and the Surplus Fund will no longer be considered to be pledged to the Bonds or any Parity Bonds, and none of the Rebate Fund, the Surplus Fund, the Improvement Fund, the Costs of Issuance Fund, or the Administrative Expenses Account of the Special Tax Fund will be construed as a trust fund held for the benefit of the Owners of the Bonds or any Parity Bonds. NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE CITY, THE COUNTY, THE STATE OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE BONDS. EXCEPT FOR THE NET TAXES, NO OTHER TAXES ARE PLEDGED TO THE PAYMENT OF THE BONDS. THE BONDS ARE NOT GENERAL OR SPECIAL OBLIGATIONS OF THE CITY BUT ARE LIMITED OBLIGATIONS OF THE DISTRICT PAYABLE SOLELY FROM THE NET TAXES AND OTHER AMOUNTS PLEDGED UNDER THE INDENTURE AS MORE FULLY DESCRIBED HEREIN. Furthermore, the obligations of the property owners within the District to pay Special Ta xes are nonrecourse and none of such property owners or any of their respective members, partners, managers and officers has any personal liability with respect to the Bonds. See “SOURCES OF PAYMENT FOR THE BONDS — Special Taxes — Proceeds of Foreclosure Sales.” See “APPENDIX D — SUMMARY OF THE INDENTURE.” Special Taxes Authorization and Pledge. In accordance with the provisions of the Act, the City established the District on April 22, 2021 for the purpose of financing of various public improvements required in connection with the proposed development within the District. At a special election held on May 13, 2021, the qualified electors within the District authorized the District to incur indebtedness in an amount not to exceed $50,000,000 for the Distri ct and the levy of the Special Taxes on property within the District to repay such bonds and to finance the purchase, construction, modification, expansion, improvement or rehabilitation of certain real or other tangible property, which are generally comprised of storm drainage, water and sewer facilities, roadway, landscaping and other public facilities of the City and sewer facilities and other public facilities of CVWD. The qualified electors within the District also voted to approve the Rate and Method which authorized the Special Tax to be levied to repay indebtedness of the District, including the Bonds. The term “Special Tax” means the taxes authorized to be levied by the District on property within the District in accordance with the Ordinance, the Resolution of Formation, the Act and the voter approval obtained at the election in the District, including any scheduled payments and any Prepayments thereof, the net proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of the Special Taxes to the amount of said lien, and penalties and interest thereon. Page 879 of 1128 22 The Bonds will be repaid only from annual Net Taxes derived from the levy and collection of Special Taxes pursuant to the Rate and Method. The Rate and Method permits the prepayment of Special Taxes for an Assessor’s Parcel, and any such Prepayments will be applied to redeem Bonds and Parity Bonds, if any. The Net Taxes collected from the annual Special Tax levy and the proceeds of any Prepayment have been pledged under the Indenture to the repayment of the Bonds and Parity Bonds. The Special Taxes levied in any Fiscal Year may not exceed the maximum rates authorized pursuant to the Rate and Method. See “— Rate and Method of Apportionment of Special Tax” and “APPENDIX A —RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX.” There is no assurance that the Net Taxes will, in all circumstances, be adequate to pay the principal of and interest on the Bonds when due. See the caption “SPECIAL RISK FACTORS—Insufficiency of Special Tax Revenues.” Rate and Method of Apportionment of Special Tax. The District is legally authorized and will covenant in the Indenture to cause the levy of the Special Taxes in an amount determined according to the Rate and Method. The Rate and Method apportions the total amount of Special Taxes to be collected among the taxable parcels in the District as more particularly described below. The following is a synopsis of the provisions of the Rate and Method for the District, which should be read in conjunction with the complete text of the Rate and Method which is attached as APPENDIX A — “RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX.” The meaning of the defined terms used in this section are as set forth in APPENDIX A. This section provides only a summary of the Rate and Method, and is qualified by more complete and detailed information contained in the entire Rate and Method attached as APPENDIX A. Assignment to Land Use Categories. Each Fiscal Year, beginning with Fiscal Year 2021-22, each Assessor’s Parcel within the District will be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property will be further classified as Developed Pr operty, Approved Property, Undeveloped Property, Provisional Welfare Property, or Provisional Property and as being in Zone 1, Zone 2 or Zone 3. Each Assessor’s Parcel of Developed Property will be classified as Single Family Property, Apartment Property, or Non-Residential Property. Each Assessor’s Parcel of Single Family Property will be classified according to its applicable Land Use Class based on its Building Square Footage. Exempt Property. The CFD Administrator will classify as Exempt Property (i) Assessor’s Parcels of Public Property, (ii) Assessor’s Parcels of Property Owner Association Property, (iii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Lower Income Households Welfare Exemption Property, and (vi) Assessor’s Parcels classified as Non-Residential Property, provided that no such classification would reduce the sum of all Taxable Property in the District to less than 44.86 Acres in Zone 1, 48.84 Acres in Zone 2 or 11.12 Acres in Zone 3. Assessor’s Parcels of Lower Income Households Welfare Exemption Property which cannot be classified as Exempt Property because such classification would reduce the sum of all Taxable Property in the District to less than 44.86 Acres in Zone 1, 48.84 Acres in Zone 2 or 11.12 Acres in Zone 3 shall be classifi ed as Provisional Welfare Property and will continue to be subject to the Special Taxes accordingly. Assessor’s Parcels which cannot be classified as Exempt Property because such classification would reduce the sum of all Taxable Property in the District to less than 44.86 Acres in Zone 1, 48.84 Acres in Zone 2 or 11.12 Acres in Zone 3 shall be classified as Provisional Property and will continue to be subject to the District Special Taxes accordingly. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which property becomes eligible for classification as Exempt Property, except for Non-Residential Property, which will be assigned tax exempt status only after all other eligible property types have been classified as Exempt Property. Page 880 of 1128 23 Maximum Special Tax, Assigned Special Tax and Backup Special Tax. Maximum Special Tax. The Maximum Special Tax for Developed Property and Provisional Welfare Property shall be the greater of the Assigned Special Tax for Developed Property and Provisional Welfare Property or the Backup Special Tax for Developed Property and Provisional Welfare Property. The Maximum Special Tax for Provisional Property, Approved Property, and Undeveloped Property commencing in Fiscal Year 2024-25 will be $16,363 per Acre for Zone 1, $20,505 per Acre for Zone 2 and $24,049 per Acre for Zone 3. The Maximum Special Tax for Provisional Property, Approved Property and Undeveloped Property will be increased by two percent (2%) of the amount in effect in the prior Fiscal Year on each July 1, beginning July 1, 2022. Assigned Special Tax. The Assigned Special Tax applicable to an Assessor’s Parcel classified as Developed Property or Provisional Welfare Property is shown in Tables 1-3 of Section C of the Rate and Method attached as APPENDIX A, which rates increase will increase by two percent (2%) of the amount in effect in the prior Fiscal Year on each July, beginning July 1, 2022. The Assigned Special Tax applicable to an Assessor’s Parcel classified as Developed or Provisional Welfare Property in Fiscal Year 2024-25 ranges from $2,441 to $1,353 per Residential Unit for Zone 1; $3,210 to $2,626 per Residential Unit for Zone 2; and $2,441 to $796 per Residential Unit for Zone 3. Backup Special Tax. The Backup Special Tax for Developed Property and Provisional Welfare Property in Fiscal Year 2024-25 will be $16,363 per Acre for Zone 1; $20,505 per Acre for Zone 2 and $24,049 per Acre for Zone 3, which will increase by two percent (2%) of the amount in effect in the Prior Fiscal Year on each July 1, beginning July 1, 2022. Method of Apportionment of Special Tax. Each Fiscal Year, beginning with Fiscal Year 2021-22, the CFD Administrator will levy the Special Tax on all Taxable Property in accordance with the following ste ps: Step 1: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax as needed to satisfy the Special Tax Requirement. Step 2: If additional monies are needed to satisfy the Special Tax Requirement after Step 1 has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Approved Property in an amount up to 100% of the Maximum Special Tax for Approved Property. Step 3: If additional monies are needed to satisfy the Special Tax Requirement after Step 2 has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property in an amount up to 100% of the Maximum Special Tax for Undeveloped Property. Step 4: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax amount determined in Step 1 shall be increased Proportionately on each Assessor’s Parcel of Developed Property in an amount up to 100% of the Maximum Special Tax for Developed Property. Step 5: If additional monies are needed to satisfy the Special Tax Requirement after the first four steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Provisional Welfare Property in an amount up to 100% of the Maximum Special Tax for Provisional Property. Step 6: If additional monies are needed to satisfy the Special Tax Requirement after the first five s teps have been completed, then the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Provisional Property in an amount up to 100% of the Maximum Special Tax for Provisional Property. “Special Tax Requirement” is defined in the Rate and Method to mean that amount required in any Fiscal Year to: (i) pay regularly scheduled Debt Service on all Outstanding Bonds; (ii) pay periodic costs on the Page 881 of 1128 24 Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on the Outstanding Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; (v) accumulate funds to pay directly for acquisition or construction of facilities, provided that the inclusion of such amount does not cause an increase in the Special Tax to be levied on Approved Property, Undeveloped Property, or Provisional Property, until the date that all Bonds have been issued; and (vi) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year; less (vii) a credit for funds available to reduce the Special Tax levy, as determined by the CFD Administrator pursuant to the Indenture. Notwithstanding the above, under no circumstances will the Special Tax levied in any Fiscal Year on any Assessor’s Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased as a result of a delinquency or default in the payment of the Special Tax applicable to any other Assessor’s Parcel within the District by more than ten percent (10%) above what would have been levied in the absence of such delinquencies or defaults. Prepayment of Special Tax. The Special Tax obligation for an Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property, or Provisional Property that has been included in a Final Map may be prepaid in full, or in part, and only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment, provided that the terms set forth under Section F of the Rate and Method are satisfied. The Prepayment Amount is calculated based on the Bond Redemption Amount plus Redemption Premium plus the Future Facilities Costs plus the Defeasance Amount plus the Administrative Fees and Expenses, less a credit for the resulting reduction in the Reserve Requirement for the Bonds, and less a credit for the resulting reduction in capitalized interest (if any), all as specified in APPENDIX A — “RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX — Section F.” The Bonds are subject to extraordinary redemption from any such prepayments. See “THE BONDS — Redemption — Extraordinary Redemption from Special Tax Prepayments.” Mandatory redemption of Bonds from Special Tax prepayments may result in the reduction in the otherwise expected yield on such Bonds if the Bonds were purchased at a price greater than par. See “SPECIAL RISK FACTORS — Potential Early Redemption of Bonds from Special Tax Prepayments.” Estimated Debt Service Coverage. In connection with the issuance of the Bonds, the Special Tax Consultant will certify that the Maximum Special Tax that may be levied in each Fiscal Year on Assessor’s Parcels within the District classified as Taxable Property will be at least equal to the sum of: (i) 110% of Maximum Annual Debt Service on the Bonds and the Series 2021 Bonds; plus (ii) the Administrative Expenses Priority Amount of $50,000 that will escalate by two percent (2%) annually beginning July 1, 2022. Actual collections of the Special Tax will depend on the amount of Special Tax delinquencies. Even if the Maximum Special Tax, if levied in accordance with the Rate and Method, would produce coverage levels which are higher than 110% of debt service in certain circumstances, because of the limitations imposed by Section 53321(d) of the Act, investors should assume that the maximum amount that could be levied in any Fiscal Year is the amount that would produce 110% of debt service due on the Bonds in the corresponding Bond Year. Section 53321(d) of the Act provides that the special tax levied against any Assessor’s parcel for which an occupancy permit for private residential use has been issued shall not be increased as a consequence o f delinquency or default by the owner of any other Assessor’s parcel by more than 10% above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. Levy, Collection and Application of Special Taxes. The Special Taxes are levied and collected by the Treasurer-Tax Collector of the County in the same manner and at the same time as ad valorem property taxes, although it is possible that the District could elect to provide handbills to property owners within the District. Page 882 of 1128 25 The District will covenant in the Indenture that each year it will levy Special Taxes, subject to the maximum rates permitted under the Rate and Method, in an amount equal to the Special Tax Requirement (as defined in the Rate and Method) which includes, but is not limited to, sufficient, together with other amounts on deposit in the Special Tax Fund, to pay the principal of and interest on any Outstanding Bonds and Parity Bonds, to replenish the Reserve Account to the Reserve Requirement and to pay Administrative Expenses. The District will make certain covenants in the Indenture which are intended to ensure that the current maximum Special Tax rates and method of collection of the Special Taxes are not altered in a manner that would impair the District’s ability to collect sufficient Special Taxes to pay debt service on the Bonds, Parity Bonds and Administrative Expenses when due. First, the District will covenant in the Indenture that it will take no actions that would discontinue or cause the discontinuance of the Special Tax levy or the District’s authority to levy the Special Tax for so long as the Bonds and any Parity Bonds are Outstanding. Second, the District will covenant in the Indenture, to the maximum extent that the law permits it to do so, not to initiate proceedings to reduce the maximum Special Tax rates for the District. Third, the District will covenant in the Indenture that, in the event that any initiative is adopted by the qualified electors within the District which purports to reduce the maximum Special Tax below the levels specified in the preceding paragraph or to limit the power of the District to levy the Special Taxes for the purposes set forth in the Indenture, it will commence and pursue legal action in order to preserve its ability to comply with such covenants. The District can provide no assurance that any such legal action will be successful. See the caption “SPECIAL RISK FACTORS — Proposition 218.” Fourth, the District will covenant in the Indenture that it will not adopt any policy pursuant to the Act permitting the tender of Bonds or Parity Bonds in full payment or partial payment of any Special Taxes unless the District has first received a certificate from an Independent Financial Consultant that the a cceptance of such a tender will not result in the District having insufficient Net Taxes to pay the principal of and interest on the Bonds and Parity Bonds when due. Although the Special Taxes constitute liens on taxed parcels within the District, they do not constitute a personal indebtedness of the owners of property within the District. Moreover, other liens for taxes and assessments already exist on the property located within the District and others could come into existence in the future in certain situations without the consent or knowledge of the City or the landowners in the District. See the captions “THE DISTRICT—Direct and Overlapping Debt” and “SPECIAL RISK FACTORS—Direct and Overlapping Indebtedness.” There is no assurance that property owners will be financially able to pay the annual Special Taxes or that they will pay such taxes even if financially able to do so, all as more fully described under the caption “SPECIAL RISK FACTORS.” Collection of Special Taxes and Flow of Funds. The Special Taxes will be levied and collected by the Treasurer-Tax Collector of the County in the same manner and at the same time as ad valorem property taxes, although it is possible that the District could elect to provide handbills to property owners within the Dis trict. When the County apportions Special Taxes to the District, the District will transmit the Special Taxes to the Trustee for deposit in the Special Tax Fund established by the Indenture. Covenant for Superior Court Foreclosure The net proceeds received following a judicial foreclosure sale of property within the District resulting from a property owner’s failure to pay the Special Taxes when due are included within the Net Taxes pledged to the payment of principal of and interest on the Bonds under the Indenture. Pursuant to Section 53356.1 of the Act, the City Council, as the legislative body of the District, may covenant for the benefit of the Owners of the Bonds to commence and diligently pursue a Superior Court action Page 883 of 1128 26 to foreclose the lien within specified time limits to collect delinquent installments of Special Taxes. In such an action, the real property subject to the unpaid amount may be sold at a judicial foreclosure sale. Under the Act, the commencement of judicial foreclosure following the nonpayment of a Special Tax is not mandatory. However, the District will covenant in the Indenture for the benefit of the owners of the Bonds and any Parity Bonds that it (i) will commence judicial foreclosure proceedings against any parcel with either (A) at least four (4) consecutive installments of delinquent Special Taxes or (B) delinquent Special Taxes in excess of $10,000 on any one parcel, in each instance by the December 1 following the close of each Fiscal Year in which such Special Taxes were due; and (ii) will commence judicial foreclosure proceedings against all parcels with delinquent Special Taxes by the December 1 following the close of each Fiscal Year in which it receives Special Taxes in an amount which is less than 95% of the total Special Tax levied for such Fiscal Year, and (iii) will diligently pursue such foreclosure proceedings until the delinquent Special Taxes are paid; provided, however, that the District may elect to defer foreclosure proceedings on any parcel so long as the amount on deposit in the Reserve Account is at least equal to the Reserve Requirement, and such delinquencies will not cause moneys in the Reserve Account to be withdrawn on the next succeeding Interest Payment Date. The District will covenant in the Indenture that it will deposit the net proceeds of any foreclosure in the Special Tax Fund and will apply such proceeds remaining after the payment of Administrative Expenses to make current payments of principal and interest on the Bonds and any Parity Bonds, to bring the amount on deposit in the Reserve Account up to the Reserve Requirement and to pay any delinquent installments of principal or interest due on the Bonds and any Parity Bonds. Notwithstanding the foregoing, the Indenture provides that, if at any time, the County’s Teeter Plan (adopted pursuant to Sections 4701 through 4717 of the California Revenue and Taxation Code) is in effect and is made applicable to the District and the Special Taxes being levied in connection with the Bonds, the District may, in its discretion, elect not to commence any judicial foreclosure proceeding pursuant to the foregoing provisions or defer the commencement of such proceedings until such time as the District deems appropriate. See “District Not Included in Teeter Plan” below. If foreclosure is necessary and other funds (including amounts in the Reserve Account) have been exhausted, debt service payments on the Bonds could be delayed unless the foreclosure proceedings produce sufficient net foreclosure sale proceeds. Judicial foreclosure actions are subject to the normal delays associated with court cases and may be further slowed by bankruptcy actions, involvement by agencies of the federal government and other factors beyond the control of the City and the District. See the caption “SPECIAL RISK FACTORS — Enforcement Delays — Bankruptcy” and “— FDIC/Federal Government Interests in Properties.” Moreover, no assurances can be given that the real property subject to foreclosure and sale at a judicial foreclosure sale will be sold or, if sold, that the net proceeds of such sale will be sufficient to pay any delinquent Special Tax installment. See the caption “SPECIAL RISK FACTORS — Property Values.” Although the Act authorizes the District to cause such an action to be commenced and diligently pursued to completion, the Act does not impose on the District or the City any obligation to purchase or acquire any lot or parcel of property sold at a foreclosure sale if there is no other purchaser at such sale. The Act provides that, in the case of a delinquency, the Special Tax will have the same lien priority as is provided for ad valorem taxes. The mere commencement of foreclosure proceedings will not assure a prompt and favorable resolution of Special Tax delinquencies. The ability of the District to foreclose the lien of delinquent unpaid Special Taxes may be limited. See “SPECIAL RISK FACTORS — Enforcement Delays — Bankruptcy” and “— FDIC/Federal Government Interests in Properties.” Moreover, even if a judgment of foreclosure and order o f sale is obtained, the District must cause a notice of levy to be issued. Under current law, the property owner has 120 days from the date of service of the notice of levy in which to redeem the subject property. If the property owner fails to redeem the property and it is sold, the property owner’s only remedy is an action to set aside the sale, which action must be brought within 90 days of the date of sale. If such an action results in the setting aside of the foreclosure sale, the judgment is revived, and the District would be entitled to receive interest on the revived judgment as if the sale had not been made. Under former law a property owner had a period of one year within which to redeem property to be sold, and the constitutionality of the legislation that eliminated the one year redemption period has not been tested. Page 884 of 1128 27 There can be no assurance that, even if the subject property is sold, the proceeds from such sale will be sufficient to pay the delinquent installments of the Special Tax. The Act does not require the District or any other governmental agency to purchase or otherwise acquire any Assessor’s Parcel being sold if there is no other purchaser at such sale. The Act does require that property being sold pursuant to foreclosure under the Act must be sold for not less than the judgment amount (which must include reasonable attorneys’ fees, together with interest, penalties, and other authorized charges and costs) plus post judgment interest and authorized costs, unless a lower bid price is authorized by the Owners of not less than 75% by value of the Bonds Outstanding. Special Tax Fund Except for Prepayments, which will be deposited with the Trustee, together with a Certificate of Authorized Representative designating such Special Taxes as Prepayments and specifying the respective amounts to be deposited in the various funds and accounts held under the Indenture. The Trustee will, on or promptly after each date on which the Special Taxes are received from the District, deposit the Special Taxes in the Special Tax Fund to be held in trust for the Owners. In general, the Indenture provides that the Trustee shall transfer the Special Taxes on deposit in the Special Tax Fund on the dates, in the amounts and in the following order of priority, to: First: To the Administrative Expenses Account in an amount up to the Administrative Expenses Priority Amount. Second: To the Interest Account, an amount such that the balance in the Interest Account three (3) Business Days prior to each Interest Payment Date is equal to the installment of interest due on the Bonds and any Parity Bonds on said Interest Payment Date and any installment of interest due on a previous Interest Payment Date which remains unpaid. Moneys in the Interest Account will be used for the payment of interest on the Bonds and any Parity Bonds as the same become due. Third: To the Principal Account, an amount such that the balance in the Principal Account three (3) Business Days prior to September 1 of each year, commencing September 1, 2022, is equal to the principal payment due on the Bonds and any Parity Bonds maturing on such September 1 and any principal payment due on a previous September 1 which remains unpaid. Moneys in the Principal Account shall be used for the payment of the principal of such Bonds and any Parity Bonds as the same become due at maturity. Fourth: To the Redemption Account, the amount needed to make the balance in the Redemption Account three (3) Business Days prior to each September 1 on which a Sinking Fund Payment is due equal to the Sinking Fund Payment due on any Outstanding Bonds and Parity Bonds on such September 1 and thereafter, to pay the principal and premium, if any, due in connection with an optional redemption of Bonds or Parity Bonds; provided, in the event of a shortfall of amounts on deposit in the Special Tax Fund (such shortfall being determined excluding amounts on deposit in, and prior to drawing upon, the Reserve Account) to make the transfers to the Principal Account and to the Redemption Account (pursuant to the paragraph immediately above and this paragraph) necessary to pay in full both (x) the principal payment due on the Bonds and any Parity Bonds maturing on the applicable September 1 and (y) the Sinking Fund Payment due on any Outstanding Bonds and any Parity Bonds on such September 1, the Trustee shall transfer the available amount from the Special Tax Fund to the Principal Account and the Redemption Account on a pro rata basis (calculated with reference to the respective principal payment and Sinking Fund Payment coming due and payable on such September 1) at least three (3) Business Days prior to such September 1. Fifth: To the Reserve Account of the Special Tax Fund to the extent necessary to replenish the Reserve Account to the Reserve Requirement. Page 885 of 1128 28 Sixth: To the Rebate Fund established by the Indenture to the extent directed by the City pursuant to the Indenture. Seventh: To the Surplus Fund established by the Indenture such remaining amounts in the Special Tax Fund after making the foregoing transfers as soon as practicable after each September 1, and in any event prior to each October 1. Unless on or prior to such date, the Trustee has received a Certificate of Authorized Representative directing that certain amounts be retained in the Special Tax Fund because the District has included such amounts as being available in the Special Tax Fund in calculating the amount of the levy of Special Taxes in such Fiscal Year. Reserve Account of the Special Tax Fund In order to secure further the payment of principal of and interest on the Bonds, the District is required, upon delivery of the Bonds, to deposit in the Reserve Account and thereafter to maintain in the Reserve Account an amount equal to the Reserve Requirement. The Reserve Requirement may be s atisfied by crediting to the Reserve Account moneys or one or more Reserve Policies or any combination thereof, which in the aggregate make funds available equal to the Reserve Requirement. “Reserve Requirement” with respect to the Bonds is defined in the Indenture to mean, as of the date of calculation an amount equal to the least of: (i) Maximum Annual Debt Service on the then Outstanding Bonds of such Series; (ii) 10% of the original amount of the Bonds (“amount” meaning the principal amount of the Bonds, unless the Bonds were issued with original issue discount greater than two percent of the principal amount, or original issue premium greater than the sum of two percent of the principal amount plus original issue premium attributable exclusively to reas onable underwriters’ compensation, in which case “amount” means issue price); or (iii) 125% of average Annual Debt Service on the then Outstanding Bonds of such Series; provided, if as of a date following the Delivery Date for the Bonds, the foregoing calculation results in an amount greater than the initial Reserve Requirement for the Bonds (calculated as of the Delivery Date for the Bonds), then the amount of the “Reserve Requirement” shall not increase and in such event shall mean the amount of the initial Reserve Requirement for the Bonds (calculated as of the Delivery Date for the Bonds) until such time as the foregoing calculation results in a lower amount. Subject to the limits on the maximum annual Special Tax levy set forth in the Rate and Method and in the Indenture, the District will covenant in the Indenture to levy Special Taxes in an amount sufficient, in light of the other intended uses of the Special Tax proceeds, to maintain the balance in the Reserve Account at the Reserve Requirement. Amounts in the Reserve Account are to be applied: (i) to pay debt service on the Bonds, or any Parity Bonds, including Sinking Fund Payments, to the extent that other monies are not available therefor; (ii) to redeem Bonds or Parity Bonds in the event of prepayment of Special Taxes, to optionally redeem Bonds or Parity Bonds or in connection with a partial defeasance of Bonds or Parity Bonds, so long as the amount on deposit in the Reserve Account following such redemption or partial defeasance equals the Reserve Requirement (taking into account Outstanding Bonds and Parity Bonds after such redemption or partial defeasance) and in accordance with the Indenture; and (iii) to pay any rebate requirements, to the extent of Net Taxes remaining following the deposits required by the Indenture each Bond Year to the Interest Account, the Principal Account, the Redemption Account, and to the Reserve Account if needed to replenish the Reserve Requirement. See “ — Special Tax Fund” above. District Not Included In Teeter Plan The Riverside County Board of Supervisors has adopted the Alternative Method of Distribution of Tax Levies and Collections and of Tax Sale Proceeds (the “Teeter Plan”) which allows each entity levying secured property taxes in the County to draw on the amount of property taxes levied rather than the amount actually collected, as provided for in Section 4701 et seq. of the California Revenue and Taxation Code. While the City’s ad valorem taxes are included in the Teeter Plan, the District will not be included in the Teeter Plan. Consequently, the District may not draw on the County Tax Loss Reserve Fund in the event of delinquencies in Special Tax payment. Page 886 of 1128 29 Parity Bonds The District may at any time after the issuance and delivery of the Bonds under the Indenture issue Parity Bonds payable from the Net Taxes and other amounts deposited in the Special Tax Fund (other than in the Administrative Expenses Account therein) and secured by a lien and charge upon such amounts equal to the lien and charge securing the Outstanding Bonds and any other Parity Bonds issued under the Indenture or under any Supplemental Indenture, provided, however, Parity Bonds may only be issued for the purposes of refunding all or a portion of the Bonds or any Parity Bonds then Outstanding or for financing the Project Costs or other purposes of the District in an original principal amount not to exceed, together with the original principal amount of the Bonds, the Series 2021 Bonds and any new money Parity Bonds, $50 million. Parity Bonds issued are subject to certain specific conditions, which are made conditions precedent to the issuance of any such Parity Bonds, including but not limited to the following: (a) The District is in compliance with all covenants set forth in the Indenture and any Supplemental Indenture then in effect and a certificate of the District to that effect has been filed with the Trustee; provided, however, that Parity Bonds may be issued if the District is not in compliance with all covenants so long as immediately following the issuance of such Parity Bonds the District will be in compliance with all such covenants. (b) The issuance of such Parity Bonds has been duly authorized pursuant to the Act and all applicable laws, and the issuance of such Parity Bonds has been provided for by a Supplemental Indenture duly adopted by the District containing the specifications set forth in the Indenture. (c) The District has received the following documents or money or securities, all of such documents dated or certified, as the case may be, as of the date of delivery of such Parity Bonds by the Trustee (unless the Trustee shall accept any of such documents bearing a prior date): (1) a certified copy of the Supplemental Indenture authorizing the issuance of such Parity Bonds; (2) a written request of the District as to the delivery of such Parity Bonds; (3) an opinion of Bond Counsel and/or general counsel to the District to the effect that (a) the District has the right and power under the Act to adopt the Indenture and the Supplemental Indentures relating to such Parity Bonds, and the Indenture and all such Supplemental Indentures have been duly and lawfully adopted by the District, are in full force and effect and are valid and binding upon the District and enforceable in accordance with their terms (except as enforcement may be limited by bankruptcy, insolvency, reorganization and other similar laws relating to the enforcement of creditors’ rights); (b) the Indenture creates the valid pledge which it purports to create of the Net Taxes and other amounts as provided in the Indenture, subject to the application thereof to the purposes and on the conditions permitted by the Indenture; and (c) such Parity Bonds are valid and binding limited obligations of the District, enforceable in accordance with their terms (except as enforcement may be limited by bankruptcy, insolvency, reorganization and other similar laws relating to the enforcement of creditors’ rights) and the terms of the Indenture and all Supplemental Indentures thereto and entitled to the benefits of the Indenture and all such Supplemental Indentures, and such Parity Bonds have been duly and validly authorized and issued in accordance with the Act (or other applicable laws) and the Indenture and all such Supplemental Indentures; and a further opinion of Bond Counsel to the effect that, assuming compliance by the District with certain tax covenants, the issuance of the Parity Bonds will not adversely affect the exclusion from gross income for federal income tax purposes of interest on the Bonds and any Parity Bonds theretofore issued on a Tax-exempt basis, or the exemption from State of California personal income taxation of interest on any Outstanding Bonds and Parity Bonds theretofore issued; Page 887 of 1128 30 (4) a certificate of the District containing such statements as may be reasonably necessary to show compliance with the requirements of the Indenture (5) where the entire principal amount of the Parity Bonds is issued to refund the Bonds or other Parity Bonds, a certificate of an Independent Financial Consultant certifying that in each Bond Year the Annual Debt Service on the Bonds and Parity Bonds to remain Outstanding following the issuance of the Parity Bonds proposed to be issued is less than the Annual Debt Service on the Bonds and Parity Bonds Outstanding prior to the issuance of such Parity Bonds; (6) where the Parity Bonds are being issued other than to refund the Bonds or other Parity Bonds, a Certificate of the Special Tax Administrator certifying that (i) the maximum Special Taxes that may be levied in each Fiscal Year net of the Administrative Expenses Priority Amount is at least 110% of the Annual Debt Service in the Bond Year that begins in such Fiscal Year; and (ii) the Value of District Property is not less than four (4) times the sum of Direct Debt for District Property plus Overlapping Debt allocable to all property in the District subject to the Special Tax. For purposes of the foregoing Certificate of Special Tax Administrator, all calculations shall consider the Parity Bonds proposed to be issued to be Outstanding. If all or any portion of the Parity Bonds are issued as Escrow Bonds, each time that amounts are to be released from the escrow account established under a Supplemental Indenture, as a condition of such release, the Trustee shall have received a Certificate of the Special Tax Administrator certifying that (x) following such release, the requirements of (i) and (ii) above will be satisfied, and (y) the amount of Special Taxes levied in such Fiscal Year and to be levied in the following Fiscal Year, together with amounts on deposit in the Interest Account, will be sufficient to pay the principal of and interest on all Outstanding Bonds and Parity Bonds (other than the remaining Escrow Bonds). For purposes of an y Escrow Bonds release test, there will be allocated to the property in the District the largest principal amount of Bonds that results in a Value of District Property at least four (4) times the sum of Direct Debt for District Property plus Overlapping Debt allocable to all property in the District subject to the Special Tax; and (7) such further documents, money and securities as are required by the provisions of the Indenture and the Supplemental Indenture providing for the issuance of such Parity Bonds. See “APPENDIX D — SUMMARY OF THE INDENTURE” for summary of other conditions precedent to issuance of such Parity Bonds. Page 888 of 1128 Estimated Combined Debt Service Schedule The following table presents an estimated debt service on the Bonds and the Series 2021 Bonds, assuming there are no optional or extraordinary redemptions. See the caption “— Redemption.” Bond Year Ending (September 1) Maximum Special Tax from Developed Property Maximum Special Tax at Buildout Annual Costs 2024 Debt Service(1)§ 2021 Debt Service(1)* Debt Service and Administration Debt Service Coverage from Developed Property* Debt Service Coverage at Buildout* 2024 $306,164 $1,977,670 $52,020 $306,940 $873,000 $1,231,960 21.54% 163.20% 2025 360,519 2,017,224 53,060 656,419 873,550 1,583,029 20.10 128.38 2026 367,729 2,057,568 54,122 670,356 873,800 1,598,278 20.31 129.74 2027 375,084 2,098,720 55,204 678,656 873,750 1,607,610 20.61 131.64 2028 382,586 2,140,694 56,308 691,531 873,400 1,621,239 20.85 133.19 2029 390,237 2,183,508 57,434 708,769 872,750 1,638,953 21.04 134.43 2030 398,042 2,227,178 58,583 724,519 871,800 1,654,902 21.27 135.85 2031 406,003 2,271,722 59,755 739,269 870,550 1,669,573 21.51 137.40 2032 414,123 2,317,156 60,950 753,019 874,000 1,687,968 21.71 138.67 2033 422,405 2,363,499 62,169 770,769 873,000 1,705,937 21.92 140.00 2034 430,853 2,410,769 63,412 782,269 871,400 1,717,081 22.22 141.95 2035 439,471 2,458,985 64,680 797,769 874,200 1,736,649 22.42 143.20 2036 448,260 2,508,164 65,974 817,019 871,200 1,754,193 22.64 144.66 2037 457,225 2,558,327 67,293 829,769 872,600 1,769,662 22.91 146.33 2038 466,370 2,609,494 68,639 846,269 873,200 1,788,108 23.13 147.77 2039 475,697 2,661,684 70,012 866,269 873,000 1,809,281 23.33 149.01 2040 485,211 2,714,918 71,412 879,100 872,000 1,822,512 23.63 150.96 2041 494,915 2,769,216 72,841 900,394 870,200 1,843,434 23.84 152.29 2042 504,813 2,824,600 74,297 919,638 872,600 1,866,535 24.02 153.46 2043 514,910 2,881,092 75,783 936,831 869,000 1,881,615 24.32 155.35 2044 525,208 2,938,714 77,299 956,975 869,600 1,903,874 24.52 156.65 2045 535,712 2,997,488 78,845 978,488 869,200 1,926,532 24.73 157.96 2046 546,426 3,057,438 80,422 997,313 872,800 1,950,534 24.92 159.19 2047 557,355 3,118,587 82,030 1,013,450 870,200 1,965,680 25.23 161.21 2048 568,502 3,180,959 83,671 1,036,900 871,600 1,992,171 25.40 162.29 2049 579,872 3,244,578 85,344 1,052,125 871,800 2,009,269 25.70 164.21 2050 591,469 3,309,469 87,051 1,073,400 870,800 2,031,251 25.94 165.75 2051 603,299 3,375,659 88,792 1,096,100 873,600 2,058,492 26.12 166.87 2052 615,365 3,443,172 90,568 1,119,950 - 1,210,518 46.86 299.35 2053 627,672 3,512,035 92,379 1,144,675 - 1,237,054 46.76 298.74 _______________________ (1) Debt service for each Bond Year ending September 1 will be paid from Special Taxes collected during the immediately preceding fiscal year. For example, debt service for the Bond Year ending September 1, 2024 will be paid from Special Taxes levied and collected during Fiscal Year ending June 30, 2024. Source: The Underwriter. § Preliminary, subject to change. Page 889 of 1128 THE DISTRICT General Description of the District The District is located north of Frank Sinatra Drive, south of Gerald Ford Drive, west of Cook Street and east of Portola Avenue. The area is locally known as “University Park,” due to the location immediately west of the facilities and future facility expansion area of the satellite campus of California State University, San Bernardino and University of California at Riverside, at the northeast corner of Frank Sinatra Drive and Cook Street. The District consists of approximately 175 gross acres. As of Jan uary 1, 2024, UPI is responsible for approximately 28% of the Fiscal Year 2023-24 Special Tax, Toll is responsible for approximately 47.5% of the Fiscal Year 2023-24 Special Tax, and individual homeowners are responsible for approximately 24.6% of the Fiscal Year 2023-24 Special Tax. See “SPECIAL RISK FACTORS — Concentration of Ownership” herein. The Project is made up of five separate project areas which are planned to included 1,069 units at buildout consisting of eight product types of for-sale single-family detached homes, for-sale attached townhomes and for-rent multifamily apartments and single-family homes. The Project is being developed by UPI, the master developer within the District. UPI is managed by MVP, who manages the day-to-day operations and development of the Project. Toll is responsible for the development and sale of 169 lots in Area No. 3 of the Project. Individual homeowners own 105 lots within Area No. 1, as of January 1, 2024. See the captions “THE DISTRICT” and “PROPERTY OWNERSHIP AND THE DEVELOPMENT” for further information with respect to the District, UPI, Toll, MVP and development within the District. Investment in the Bonds involves risks that are not appropriate for certain investors. Certain events could affect the ability of the District to pay the principal of and interest on the Bonds when due. See the caption “SPECIAL RISK FACTORS” for a discussion of certain risk factors that should be considered, in addition to the other matters set forth herein, in evaluating the investment quality of the Bonds. A map showing the location of the District appears following the Table of Contents. Formation Proceedings The District was formed on April 22, 2021 pursuant to the Act. The Act was enacted to provide an alternative method of financing certain public capital facilities and services, especially in developing areas of the State. Any local agency (as defined in the Act) may establish a community facilities district to provide for and finance the cost of eligible public facilities and services. Generally, the legislative body of the local agency which forms a community facilities district acts on behalf of such district as its legislative body. Subject to approval by two-thirds of the votes cast at an election and compliance with the other provisions of the Act, a legislative body of a local agency may issue bonds for a community facilities district and may levy and collect a special tax within such district to repay such indebtedness. Pursuant to the Act, on March 11, 2021, the City Council adopted Resolution No. 2021-05 (the “Resolution of Intention”), stating its intention to form the District and to authorize the levy of a special tax on the taxable property within the District, and Resolution No. 2021-06, stating its intention to incur bonded indebtedness in an aggregate principal amount not to exceed $50,000,000 for the purpose of financing the purchase, construction, expansion or rehabilitation of certain public facilities to serve the area within the District. Subsequent to a noticed public hearing on April 22, 2021, the City Council adopted certain resolutions (collectively, the “Resolution of Formation”). The Resolution of Formation: (i) established the District; (ii) authorized the levy of a special tax (the “Special Tax”) within the District; (iii) determined the necessity to incur bonded indebtedness in an amount not to exceed $50,000,000 within the District; and (iv) called an election within Page 890 of 1128 33 the District on the proposition of incurring bonded indebtedness, levying the Special Tax and setting an appropriations limit. On May 13, 2021, an election was held within the District in which the property owners within the District approved the proposition authorizing the issuance of bonds in an amount not to exceed $50,000,000 to finance the purchase, construction, modification, expansion, improvement or rehabilitation of certain real or other tangible property described in the Resolution of Formation, which are generally comprised of storm drainage, street improvements, landscaping and irrigation, public open space and recreational facilities and other public facilities of the City and water, sewer and other public facilities of CVWD. A Notice of Special Tax Lien for the District was recorded in the office of the County Recorder on May 25, 2021, as Document No 2021-0320187. On May 27, 2021, the City Council adopted Ordinance No. 1365 (the “Ordinance”) which authorizes the levy of a special tax pursuant to the Rate and Method of Apportionment approved at the May 13, 2021, election (the “Rate and Method”), a copy of which is attached hereto as Appendix A. The Ordinance will become effective 30 days from the date of adoption. Any successful challenge of the Ordinance, if not cured, may have an adverse impact on the ability of the District to levy the Special Taxes necessary to pay debt service on the Bonds. The City, the District and UPI have entered into that certain Acquisition Agreement pursuant to which the City will acquire from UPI certain storm drainage, street improvements, landscaping a nd irrigation, public open space and recreational facilities and other public facilities. The City, CVWD and UPI also entered into that certain Joint Community Facilities Agreement, dated June 8, 2021, pursuant to which CVWD would acquire from UPI certain water and sewer improvements to be owned by CVWD. The District expects to issue additional series of bonds up to the remaining balance of bond authorization, which bonds are expected to be secured by Net Taxes on a parity with the Bonds and Series 2021 B onds. Such Parity Bonds are expected to be issued once development progresses in the District. See “SPECIAL RISK FACTORS – Effect of Parity Bonds on Credit Quality.” Description of Authorized Facilities The City, the District and UPI have entered into that certain Acquisition Agreement pursuant to which the City will acquire from UPI certain street improvements, storm drainage, landscaping and irrigation, public open space and recreational facilities, and other improvements to be owned by the City. Proceeds of the Bonds are expected to be used to pay for a portion of such acquisition. The City, CVWD and UPI have also entered into that certain Joint Community Facilities Agreement pursuant to which CVWD will acquire from UPI certain water and sewer system impr ovements to be owned by CVWD. Proceeds of the Bonds are expected to be used to pay for a portion of such acquisition. The expected total cost of the facilities eligible to be financed with the proceeds of bonds to be issued by the District (the “Facilities”), based on the current estimated cost of the Facilities, is approximately [$__________]. The Facilities consist of street and bridge improvements, curbs and gutters, sidewalks, trails, medians, traffic signalization and signage, street lights, utilities, storm water drainage, on and off-site detention and treatment facilities, and landscaping and irrigation related thereto, sewer collection and conveyance facilities, land and facilities for parks and recreational uses, fire facilities and equipment, libra ry facilities and equipment, transit facilities, fiber optic telecommunication facilities, general government office, administrative and meeting facilities, bus and rapid transit facilities and land, rights of way and easements necessary for any of such facilities. The cost of the Facilities necessary to serve the property within the District, based on current estimates, is expected to exceed the amount of proceeds of the Series 2021 Bonds, the Bonds and future Parity Bonds available to finance such Facilities. The costs of the Facilities in excess of available proceeds from the sale of the Page 891 of 1128 34 Bonds and future Parity Bonds that may be issued by the District have been and are expected to continue to be paid for by UPI. See “PROPERTY OWNERSHIP AND THE DEVELOPMENT” below. Direct and Overlapping Debt The ability of an owner of land within the District to pay the Special Taxes could be affected by the existence of other taxes and assessments imposed upon the property. These other taxes and assessments which secure direct and overlapping debt outstanding in the District are set forth in Table 1 below (the “Debt Report”). The Debt Report sets forth those entities which have issued debt and does not include entities which only levy or assess fees, charges, ad valorem taxes or special taxes. See “—Expected Tax Burden” below for information regarding other entities levying taxes, assessments or other charges on property in the District. The Debt Report includes the principal amount of the Bonds. The Debt Report has been derived from data assembled and reported to the District by the County as of July 1, 2023. None of the District, the City, or the Underwriter has independently verified the information in the Debt Report and do not guarantee its completeness or accuracy. As discussed under “SPECIAL RISK FACTORS — Parity Taxes and Special Assessments,” the property within the District may be subject to additional taxes and assessments imposed by other public agencies in the future. Table 1 below does not include any authorized and unissued debt of other agencies. TABLE 1 CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) DIRECT AND OVERLAPPING DEBT Appraised Value as of December 15, 2023: $176,855,000 DIRECT AND OVERLAPPING ASSESSMENT DEBT : % Applicable Debt as of July 1, 2023 Desert Community College District General Obligation Bonds 0.028% $ 137,598 Palm Springs Unified School District General Obligation Bonds 0.074 308,256 City of Palm Desert Community Facilities District No. 2021 -1 - Series 2024 100.000 12,000,000 City of Palm Desert Community Facilities District No. 2021 -1 - Series 2021 100.000 14,650,000 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $27,095,854 OVERLAPPING GENERAL FUND DEBT : Riverside County General Fund Obligations 0.008% $ 54,278 Riverside County Pension Obligation Bonds 0.008 59,159 TOTAL OVERLAPPING GENERAL FUND DEBT $ 113,437 OVERLAPPING TAX INCREMENT DEBT (SUCCESSOR AGENCY): $ 510,870 COMBINED TOTAL DEBT $27,720,161(1) Ratios to Appraised Value: Direct Debt ($26,650,000) 15.07% Total Direct and Overlapping Tax and Assessment Debt 15.32% Combined Total Debt 15.67% _______________________ (1) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. Source: California Municipal Statistics, Inc., Special Tax Consultant. Page 892 of 1128 35 Expected Tax Burden Table 2 below sets the effective tax rate of the smallest floorplan by products, based on sale prices provided by UPI. The expected tax burden of the Special Taxes and other taxes and assessments on individual parcels located within the District will vary among parcels. Actual amounts charged and the effective tax rates may vary and may increase or decrease in future years. Page 893 of 1128 TABLE 2 CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) ESTIMATED SPECIAL TAXES Land Use Class Land Use Type Building Square Footage Assigned Special Tax per Residential Unit Fiscal Year 2023-24 Developed Property Fiscal Year 2023-24 (1) Special Taxes for Fiscal Year 2023-24 Developed Property (2) Assigned Special Tax per Residential Unit Fiscal Year 2024-25 (3) Developed Property Fiscal Year 2024-25 (3) Estimated Special Taxes for Fiscal Year 2024-25 Developed Property (3) Number of Units at Buildout Projected Special Tax Revenues at Buildout (4) Zone 1 Single Family Property Greater Than 2,500 $2,392.92 0 $ 0.00 $2,440.78 0 $ 0.00 13 $31,730.12 2 Single Family Property 2,400 - 2,499 2,314.89 10 23,148.90 2,361.19 12 28,334.25 12 28,334.25 3 Single Family Property 2,300 - 2,399 2,262.87 25 56,571.75 2,308.13 28 64,627.57 96 221,580.23 4 Single Family Property 2,200 - 2,299 2,184.84 10 21,848.40 2,228.54 10 22,285.37 18 40,113.66 5 Single Family Property 2,100 - 2,199 2,106.81 9 18,961.29 2,148.95 9 19,340.52 36 77,362.06 6 Single Family Property 2,000 - 2,099 2,002.77 11 22,030.47 2,042.83 11 22,471.08 42 85,798.67 7 Single Family Property 1,900 - 1,999 1,664.64 11 18,311.04 1,697.93 14 23,771.06 55 93,386.30 8 Single Family Property 1,800 - 1,899 1,612.62 15 24,189.30 1,644.87 17 27,962.83 53 87,178.24 9 Single Family Property Less than 1,800 1,326.51 0 0.00 1,353.04 0 0.00 64 86,594.57 Zone 1 Single Family Property Greater Than 3,400 3,147.21 0 0.00 3,210.15 0 0.00 24 77,043.70 2 Single Family Property 3,200 - 3,399 3,095.19 0 0.00 3,157.09 0 0.00 24 75,770.25 3 Single Family Property 3,000 - 3,199 2,991.15 0 0.00 3,050.97 0 0.00 48 146,446.70 4 Single Family Property 2,800 - 2,999 2,913.12 10 29,131.20 2,971.38 13 38,627.97 55 163,426.03 5 Single Family Property 2,600 - 2,799 2,783.07 13 36,179.91 2,838.73 15 42,580.97 59 167,485.15 6 Single Family Property 2,400 - 2,599 2,731.05 11 30,041.55 2,785.67 14 38,999.39 80 222,853.68 7 Single Family Property 2,200 - 2,399 2,705.04 0 0.00 2,759.14 0 0.00 0 0.00 8 Single Family Property 2,000 - 2,199 2,679.03 0 0.00 2,732.61 0 0.00 27 73,780.49 9 Single Family Property Less than 2,000 2,574.99 10 25,749.90 2,626.49 12 31,517.88 27 70,915.22 Zone 1 Single Family Property Greater Than 2,500 2,392.92 0 0.00 2,440.78 0 0.00 0 0.00 2 Single Family Property 2,400 - 2,499 2,314.89 0 0.00 2,361.19 0 0.00 0 0.00 3 Single Family Property 2,300 - 2,399 2,262.87 0 0.00 2,308.13 0 0.00 0 0.00 4 Single Family Property 2,200 - 2,299 2,184.84 0 0.00 2,228.54 0 0.00 0 0.00 5 Single Family Property 2,100 - 2,199 2,106.81 0 0.00 2,148.95 0 0.00 0 0.00 6 Single Family Property 2,000 - 2,099 2,002.77 0 0.00 2,042.83 0 0.00 0 0.00 7 Single Family Property 1,900 - 1,999 1,664.64 0 0.00 1,697.93 0 0.00 0 0.00 8 Single Family Property 1,800 - 1,899 1,612.62 0 0.00 1,644.87 0 0.00 0 0.00 9 Single Family Property Less than 1,800 1,326.51 0 0.00 1,353.04 0 0.00 0 0.00 10 Apartment Property 780.30 0 0.00 795.91 0 0.00 336 267,424.42 11 Non Residential Property N/A 0 N/A N/A 0 N/A 0 N/A Totals 135 $306,163.71 155 $360,518.89 1,069 $2,007,223.76 ______________________ (1) Under the Rate and Method, property is classified as “Developed Property” for special tax levy purposes if a building permit has been issued for the parcel prior to May 1 of the previous fiscal year. See “SECURITY FOR THE BONDS -- Rate and Method of Apportionment of Special Taxes” and “APPENDIX B -- Rate and Method of Apportionment of Special Taxes.” Based on Building Permits issued as of May 1, 2023. (2) Represents the Special Taxes levied on Developed Property for Fiscal Year 2023-24. (3) Represents the Assigned Special Tax for Developed Property in Fiscal Year 2024-25 and Developed Property assuming Building Permits as of December 15, 2023. (4) Represents the Assigned Special Tax for Developed Property in Fiscal Year 2024-25 assuming all Residential Units are developed in accordance with the development plan through buildout. Source: Willdan Financial Services. Page 894 of 1128 Appraisal Report As a result of the requirements of Article XIIIA of the California Constitution, a property’s assessed value is not necessarily indicative of its market value. In order to provide information with respect to the market value of the fee simple estate by parcel of taxable property within the District, the City engaged the Appraiser, to prepare the Appraisal Report. The Appraiser has an “MAI” designation from the Appraisal Institute and has prepared numerous appraisals for the sale of land-secured municipal bonds. The Appraiser was selected by the City and has no material relationships with the City, the Underwriter or the owners of the land within the District other than the relationship represented by the engagement to prepare the Appraisal Report. The Appraisal Report is intended to comply with the appraisal guidelines of Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 and the Uniform Standards of Appraisal Practice, adopted by the Appraisal Standards Board of the Appraisal Foundation. The City instructed the Appraiser to prepare its analysis and report in conformity with City-approved guidelines and the Appraisal Standards for Land Secured Financings published in 1994 and revised in 2004 by the California Debt and Investment Advisory Commission. A copy of the Appraisal Report is included as “APPENDIX C — APPRAISAL REPORT” to this Official Statement. The purpose of the Appraisal Report was to estimate the market value of the fee simple estate by parcel of property within the District. The estimate of market value assumes that eligible fees proposed for the District have been paid. Subject to the assumptions and limiting conditions set forth in the Appraisal Report, the Appraiser concluded that, as of the Date of Value, the market value of property within the District was $176,855,000. In valuing the property within the District, the Appraiser used a sales comparison approach for each of the parcels of Taxable Property within the District. Reference is made to APPENDIX C for a complete list of the Appraiser’s assumptions and limiting conditions and a full discussion of the appraisal methodology and the basis for the Appraiser’s opinions. In the event that any of the assumptions and limiting conditions are not actually realized, the value of the property within the District may be less than the amount reported in the Appraisal Report. In any case, there can be no assurance that any parcels of Taxable Property within the District would actually sell for the amount indicated by the Appraisal Report. The Appraisal Report is a statement of the Appraiser’s opinion as to the market value of the taxable property in the District as of the date and under the conditions specified therein. The Appraiser’s opinion reflects conditions prevailing in the applicable market as of the Date of Value. The Appraiser’s opinion does not predict the future value of the subject property, and there can be no assurance that market conditions will not change adversely in the future. See “SPECIAL RISK FACTORS — Property Values.” It is a condition precedent to the issuance of the Bonds that the Appraiser deliver to the District a certification to the effect that, nothing has come to the attention of the Appraiser subsequent to the date of the Appraisal Report that would cause the Appraiser to believe that the value of the property in the District is less than the value reported in the Appraisal Report. However, the Appraiser notes that acts and events may have occurred since the date of the Appraisal Report which could result in both positive and negative effects on market value within the District. Neither the City nor the Underwriter makes any representation as to the accuracy of the Appraisal Report. See “APPENDIX C — APPRAISAL REPORT.” There is no assurance that the property within the District can be sold for the prices set forth in the Appraisal Report or that any parcel can be sold for a price sufficient to pay the Special Tax for that parcel in the event of a default in payment of Special Taxes by the landowner. See “SPECIAL RISK FACTORS — Property Values” and “APPENDIX C — APPRAISAL REPORT.” Page 895 of 1128 Estimated Appraised Value-to-Lien Ratios Table 3 below sets forth the estimated appraised value-to-lien ratio for the Taxable Property within the District based on the appraised value of each parcel as of the Date of Value, as set forth in the Appraisal Report, the principal amount of the Bonds and the Series 2021 Bonds and the Fiscal Year 2024- 25 Special Tax. Based on the principal amount of the Bonds and the Series 2021 Bonds, the estimated appraised value-to-lien ratio of the Taxable Property within the District is 6.64:1**. This ratio does not include overlapping debt within the District. See “— Direct and Overlapping Indebtedness” above. Taking the overlapping debt into account, which consists of overlapping general obligation debt, the ratio of the aggregate appraised value of the T axable Property within the District to the total principal amount of the Bonds is approximately 6.38:1*. TABLE 3 CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) APPRAISED VALUE-TO-LIEN RATIOS BY OWNER AND DEVELOPMENT STATUS Property Owner Land Use Classification(1) No. of Residential Lots Appraised Value(2) Percentage of Appraised Value 2021 & 2024 Bonds(3) Value-to-Lien Ratio(4)* Est. 2024-25 Special Tax(5) Percentage of Total Fiscal Year 2024-25 Est. Special Tax Levy Individuals Single Family Property 102 $ 69,895,000 39.5% $ 4,000,473 17.47:1 $ 237,631 15.0% UPI Single Family Property 53 26,365,000 14.9 2,068,795 12.74:1 122,888 7.8 UPI/Toll Approved 250 50,180,000 28.4 11,691,824 4.29:1 694,503 43.9 UPI Undeveloped 664 30,415,000 17.2 8,888,907 3.42:1 528,007 33.4 Totals 1,069 $176,855,000 100.0% $26,650,000 6.64:1 $1,583,029 100.0% _______________________________ (1) Based on building permits issued as of December 15, 2023. Under the Rate and Method, property is considered “Developed Property” for special tax levy purposes if a building permit has been issued for the assessor’s parcel prior to May 1 preceding the applicable tax year. See “SECURITY FOR THE BONDS -- Rate and Method of Apportionment of Special Taxes” and “APPENDIX A -- Rate and Method of Apportionment of Special Taxes”. (2) Based on the Appraisal dated January 5, 2024, with a December 15, 2023 date of value. See “APPENDIX C -- Appraisal Report”. (3) Allocated based on percentage of Assigned Special Tax on Developed Property at buildout. (4) Value-to-Lien Ratio is calculated as “Appraised value” divided by “Principal Amount of Bonds”. (5) Based on Assigned Special Tax on Developed Property, and includes the Administrative Expense Priority Amount of $50,000 for B ond Year 2021 and escalating 2% annually beginning July 1, 2022 and to be used to pay administrative expenses. See “THE DISTRICT -- Estimated Special Taxes and Debt Service Coverage” for more details. Source: Willdan Financial Services. ** Preliminary, subject to change. Page 896 of 1128 Table 4 below sets forth the estimated appraised value-to-lien ratio for Taxable Property within the District based on the category. TABLE 4 CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) APPRAISED VALUE-TO-LIEN RATIOS BY CATEGORY VTL Category(1) No. of Residential Lots Appraised Value(2) Percentage of Appraised Value 2021 & 2023 Bonds(3)* Value-to-Lien Ratio(4)* Est. Fiscal Year 2024-25 Special Tax(5)* Percentage of Total Fiscal Year 2024-25 Est. Special Tax Levy* Not Greater than 3.00:1 32 $ 6,488,621 3.7% $ 2,362,150 2.75:1 $ 140,313 8.9% 3.01:1 to 6.00:1 796 56,908,416 32.2 15,971,897 3.56:1 948,742 59.9 6.01:1 to 9.00:1 76 15,168,082 8.6 2,029,069 7.48:1 120,528 7.6 9.01:1 to 12.00:1 24 9,448,722 5.3 878,184 10.76:1 52,165 3.3 Greater than 12.00:1 141 88,841,160 50.2 5,408,701 16.43:1 321,281 20.3 Totals 1,069 $176,855,000 100.0% $26,650,000 6.64:1 $1,583,029 100.0% _____________________________ (1) Based on building permits issued as of December 15, 2023. Under the Rate and Method, property is considered “Developed Proper ty” for special tax levy purposes if a building permit has been issued for the assessor’s parcel prior to May 1 preceding the applicable tax year. See “SECURITY FOR THE BONDS -- Rate and Method of Apportionment of Special Taxes” and “APPENDIX B -- Rate and Method of Apportionment of Special Taxes”. (2) Based on the Appraisal dated January 5, 2024, with a December 15, 2023 date of value. See “APPENDIX C -- Appraisal Report”. (3) Allocated based on percentage of Assigned Special Tax on Developed Property at buildout. (4) Value-to-Lien Ratio is calculated as “Appraised value” divided by principal amount of bonds. (5) Based on Assigned Special Tax on Developed Property, and includes the Administrative Expense Priority Amount of $50,000 per Bond Year 2021 and escalating 2.00% annually beginning July 1, 2022, to be used to pay administrative expenses. See “THE DISTRICT -- Estimated Special Taxes and Debt Service Coverage” for more details. *Preliminary, subject to change. Source: Willdan Financial Services. Page 897 of 1128 Table 5 below sets forth the special tax collections and delinquencies for the fiscal years below: TABLE 5 CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) SPECIAL TAX COLLECTIONS AND DELINQUENCIES(1) Delinquencies at Fiscal Year End Delinquencies as of September 2023 Fiscal Year Parcels Levied Amount Levied Parcels Delinquent Amount Delinquent Percent Delinquent Parcels Delinquent Amount Delinquent Percent Delinquent 2021-22(1) 10 $922,163 0 $ 0 0.00% 0 $0 0.00% 2022-23 243 969,306 0 0 0.00 0 0 0.00 2023-24(2) 405 978,724 N/A N/A N/A N/A N/A N/A ________________________ (1) No levy prior to Fiscal Year 2021-22. (2) No delinquency data available for Fiscal Year 2023-24 levy. Source: Willdan Financial Services. Table 6 below sets forth the estimated total effective tax rate for Fiscal Year 2022-23. TABLE 6 CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) ESTIMATED TOTAL EFFECTIVE TAX RATE VALUES Zone 1 Class 8 Detached 1,800 to 1,899 Sq. Ft. Zone 2 Class 9 Detached Less than 2,000 Sq. Ft. Zone 3 Class 8 Detached 1,800 to 1,899 Sq. Ft. Median Base Price(1) $593,000.00 $695,900.00 $578,900.00 Less: Homeowner’s Exemption (7,000.00) (7,000.00) (7,000.00) Estimated Net Assessed Value $586,000.00 $688,900.00 $571,900.00 AD VALOREM PROPERTY TAXES(2) Basic Levy 1.0000% $ 5,860.00 $ 6,889.00 $ 5,719.00 Palm Springs Unified School District 0.1449 849.29 998.42 828.85 CV Water District 0.1100 644.60 757.79 629.09 Desert Community College 0.0395 231.47 272.12 225.90 Total $ 7,585.36 $ 8,917.33 $ 7,402.85 ASSESSMENTS, SPECIAL TAXES AND CHARGES FC Coachella Valley Mosquito & RIFA(2) $ 14.38 $ 14.38 $ 14.38 Palm Desert Emergency Services(2) 60.00 60.00 60.00 Coachella VL RC/PK TP 97-1(2) 62.40 62.40 62.40 CVWD Sewer’s Service Charge(2) 348.48 348.48 348.48 City of Palm Desert CFD 2021-1 Special Tax(3) 1,612.62 2,574.99 1,612.62 Total $ 2,083.50 $ 3,045.87 $ 2,083.50 PROJECTED TOTAL PROPERTY TAXES $ 9,668.86 $11,963.20 $ 9,486.35 Estimated Effective Tax Rate 1.63% 1.72% 1.64% _______________________ (1) Based on the Appraisal dated February 23, 2023, with a February 1, 2023 date of value. See “APPENDIX C – Appraisal Report.” (2) Based on the Fiscal Year 2022/2023 tax bills for subject property. (3) Based on the Rate and Method. Source: Willdan Financial Services. Page 898 of 1128 41 Largest Taxpayer Based on ownership status as of January 1, 2024, UPI will be responsible for approximately 53% of the projected Fiscal Year 2024-25 Special Tax levy and Toll will be responsible for approximately 32% of the projected Fiscal Year 2024-25 Special Tax Levy. Individual property owners will be responsible for approximately 15% of the projected Fiscal Year 2024-25 Special Tax levy. See the caption “SPECIAL RISK FACTORS — Concentration of Ownership.” Fiscal Year 2021-22 was the first year the Special Tax is levied on property within the District. Increasing Mortgage Interest Rates Most of the purchasers of the homes finance their acquisitions with mortgage financing. As such, rising interest rates, decreased availability of mortgage financing or of certain mortgage programs, higher down payment requirements or increased monthly mortgage costs could have a negative impact on the estimated absorption rates of UPI’s and Toll’s planned for-sale homes in the District. Further, a combination of higher mortgage rates, delays in construction stemming from delays in the supply chain, homebuyers’ inability to sell their existing homes and adverse changes in local, regional or national economic conditions, among other factors, could contribute to an increase in UPI’s and Toll’s rate of home order cancellations. An increase in the level of such cancellations could similarly have a negative impact on the estimated absorption rates of UPI’s and Toll’s planned for-sale homes in the District. Impact of Economic Conditions on the Development in the District Certain events and factors which negatively affect the regional, State and national economies could have an adverse effect on the pace at which UPI and Toll can complete the remaining future homes, and demand by, and the ability of individuals to purchase homes within the District. Such events and factors could include rising inflation and interest rates, persistent supply chain issues, further impacts of the COVID-19 pandemic and global market instability caused by the war in Ukraine. Any adverse impact of the foregoing and other economic factors on the Project in the District and the real estate market in general cannot be predicted. Page 899 of 1128 42 PROPERTY OWNERSHIP AND THE DEVELOPMENT The information about the property ownership contained in this section of the Official Statement has been provided by UPI and Toll and has not been independently confirmed or verified by the Underwriter, the City or the District. No assurance can be given that the proposed development will occur as desc ribed in this Official Statement or that it will be completed in a timely manner, if at all, or that UPI and Toll will continue to own the property. Neither the Bonds nor the Special Taxes are personal obligations of UPI, Toll, or any affiliate thereof, and, in the event that a property owner defaults in the payment of its Special Taxes, the District may proceed with judicial foreclosure but has no direct recourse to the assets of such property owner or any affiliate thereof. Neither the Underwriter, the City nor the District make any representation as to the accuracy or adequacy of this information. Further, there may be material adverse changes in this information after the date of this Official Statement. Property Ownership The table below shows the ownership of taxable property within the District, as of January 1, 2024. Special Taxes were not levied on undeveloped property in Fiscal Year 2023-24. TABLE 7 CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) PROPERTY OWNERSHIP (As of January 1, 2024) By Actual Fiscal Year By Fiscal Year 2023-24 By Fiscal Year 2023-24 Owner 2023-24 Levy Amount Taxable Parcels Taxable Acreage Individuals $240,409.72 24.6% 105 25.5% 12.92 10.3% UPI 273,798.84 28.0 137 33.3 86.50 69.1 Toll 464,515.38 47.5 169 41.1 25.69 20.5 Total $978,723.94 100.0% 411 100.0% 125.11 100.0% ________________________ Source: UPI. As of January 1, 2024, UPI has commenced construction on Area No. 1 and Area No. 3. UPI has closed on 105 homes to individual homeowners and 21 homes are under contract to be closed in the next year. See “PLAN OF FINANCE” herein and “— Proposed Development and Current Development Status” below. The Developer Acquisition of the Project. UPI purchased the vacant land constituting the Project on August 4, 2017 for $20,000,000. The prior sale of the property along with an additional 21.36 acres that is not included in the District occurred in August 2005 for $120,000,000. Lennar Homes purchased a portion of the 21.36 acr es adjacent to the District that is entitled for 196 residential units on December 23, 2020 for $14,577,000. On November 29, 2023, UPI sold 169 lots in Area No. 3 to AG EHC II Toll CA 2 LP for $34,304,000. Ownership Structure and Experience. As of January 1, 2024, UPI is the owner of approximately 69.1% of the Taxable Property within the District. Toll is responsible for approximately 20.5% of the Taxable Property within the District. Individual homeowners own approximately 10.3% of the Taxable Property within the District. UPI - UPI is a single purpose entity formed to develop the Project. UPI is managed by MVP pursuant to that certain Amended and Restated Limited Liability Company Agreement of University Park Investor. UPI is an investment entity, wholly owned by University Park Aggregator, LLC (“UPA”), which in turn is owned by various investment management clients for the purpose of investing in the Project. Page 900 of 1128 43 UPA is managed by BlackRock Financial Management, Inc. (“BlackRock”). MVP is managing the day- to-day operations and development of the Property. The key individuals of MVP who are responsible for the development of the Property are seasoned real estate professionals with significant experience in master planned community development, having worked at KB Home and Trumark Companies. The principals of MVP developed Jordan Ranch, a partnership between MVP and its investors, and a different BlackRock managed entity, which acquired, entitled, developed, and sold 933 finished lots in Dublin, California. From 2008 through 2019, Jordan Ranch produced over $283 million in revenues, $147.5 million in profits, with a 27.5% internal rate of return. Toll – [TO COME] Proposed Development and Current Development Status No assurances can be made that UPI, AG EHC or any future owner of property within the District will have the resources, willingness, and ability to successfully complete development activities on the property within the District. No representation is made as to the ability (financial or otherwise) of UPI, AG EHC or any future owner of property within the District to complete development as currently planned. Moreover, the development and financing plans described below are as of the dates indicated; UPI, Toll will continue to evaluate the real estate market and make adjustments to the development and financing plans as determined necessary by UPI and Toll. Background and Entitlement Status. The Final Map for TR 37506-1 was recorded on March 17, 2021 and the Final Map for TR 37506-2 was recorded on September 29, 2022. UPI has pulled 168 building permits in Area No. 1 as of January 1, 2024. Area No. 1 is entitled for 236 single family residential units. Area No. 2 is entitled for 146 single family residential units. Area No. 3 is entitled for 169 single family residential units. Area No. 4 is entitled for 72 single family residential units and 110 townhomes. Area No. 5 is entitled for 336 apartment units. An environmental impact report was prepared and approved in 2016 and an addendum was completed in 2018, a Phase I Environmental Site Assessment was prepared by Sladden Engineering (“Sladden”) dated May 9, 2016 and a soils report was prepared by Sladden dated August 10, 2005 and updated May 10, 2018. Infrastructure Development. Area No. 1 is currently under construction with 105 units closed to individual homeowners. Area No. 3 is in a near finished state. UPI is currently constructing improvements, which include: storm drains, sanity sewer system, water facilities, streets, signals, landscaping, and site amenities. Site development for Area No. 1 is complete and site development for Area No. 3 is near completion. Approximately 58% of the budgeted improvements are complete. Once improvements have been completed to serve each lot and fees have been paid the City will issue building permits. A special services agreement with CVWD lists the water system backup facility fee payment requirements and the timing of construction of an offsite well for the Project necessary for water service. CVWD typically charges this fee prior to each water meter/service and it will credit UPI’s lump sum payments against these fees. UPI’s total costs for eligible and non-eligible horizontal improvements for all five areas, including the fees, is expected to be approximately $56.52 million. Perimeter public streets for the Project have been installed. The Project will tie into the utility mains in these streets and complete all onsite grading and public/private street improvements in a phased fashion. The current schedule anticipates all work by UPI on the Project to be completed by the end of 2026. Set forth below is an estimate of the infrastructure development costs, the approximate percentage complete and the approximate remaining cost to complete that will be undertaken by UPI. The estimate does not include any work that will be done by merchant builders. The table below provides a status of the construction improvements, not including service and fee items. Page 901 of 1128 44 TABLE 8 CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) STATUS OF INFRASTRUCTURE IMPROVEMENTS (As of January 1, 2024) Construction Improvements Actual/Estimated Total Costs Actual Costs Incurred Approximate Percentage Complete (Project-Wide) Approximate Remaining Cost to Complete Demolition $ 135,000 $ 85,000 63% $ 50,000 Mobilization/Site Preparation 938,609 448,957 48 489,652 Grading to “Blue Top” 4,913,297 2,088,133 42 2,825,165 Retaining Walls 1,855,598 1,280,818 69 574,780 Erosion Control 423,099 219,641 52 203,368 Storm Drainage 1,272,478 653,793 51 618,685 Sanitary Sewer 2,538,250 1,574,359 62 963,891 Domestic Water 4,574,362 2,655,935 58 1,918,427 Street Improvements 7,037,644 4,514,287 64 2,523,357 Dry Utilities 3,687,861 2,174,681 59 1,513,180 Landscaping and Irrigation 4,087,773 2,283,022 56 1,804,751 Site Amenities 8,510,789 5,478,357 64 3,032,432 Walls and Fencing 3,035,036 1,503,509 50 1,531,527 Subtotal Construction Costs $43,009,705 $24,960,492 58 $18,049,213 Contingency 6,451,456 3,744,074 58 2,707,382 Total Construction Costs $49,461,161 $28,704,566 58% $20,756,595 ________________________ Source: UPI. The table below shows the service and fee items in UPI’s budget for the Project. TABLE 9 CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) SERVICE AND FEE ITEMS BUDGET (As of January 1, 2024) Service and Fee Items Actual/Estimated Total Costs Actual Costs Incurred Approximate Percentage Complete (Project-Wide) Approximate Remaining Cost to Complete Consulting Services $2,979,476 $1,898,354 64% $1,081,122 Subdivision Bonds 597,561 346,305 58 251,256 Entitlement Fees 71,212 40,484 57 30,728 Permit, Plan Check, and Inspection Fees 1,328,699 960,867 72 367,832 Development Impact Fees 1,952,142 1,711,971 88 240,171 Subtotal Services & Fees $6,929,089 $4,957,981 72 $1,971,108 Contingency 138,582 99,160 72 39,422 Total Services & Fees $7,067,671 $5,057,141 72% $2,010,530 _______________________ Source: UPI. Home Development and Sales. The Project is made up of five separate project areas being developed in different areas, which are planned to include 1,069 units at buildout consisting of eight product types of for -sale Page 902 of 1128 45 single-family detached homes, for-sale attached townhomes and for-rent multifamily apartments. Below is a map of the Project. Page 903 of 1128 [INSERT MAP] Page 904 of 1128 Area No. 1 consisting of 236 home sites and Area No. 3 consisting of 169 homes sites are under construction. The horizontal improvements for Area No. 1 are complete and the estimated cost to build the 236 homes (excluding the cost of land) is an additional approximately $31.1 million (or $33.9 million inclusive of soft costs). Area No. 1 is expected to be built out in February of 2026. The estimated cost to complete the horizontal improvements for Area No. 3 is approximately $850,0000 and the estimated cost to build the 169 homes (excluding the cost of the land) is an additional approximately $58.3 million (or $53.2 million inclusive of soft costs). Future areas are anticipated to begin horizontal improvements and construction in April 2024 (Area No. 2), July 2024 (Area Nos. 5) and January 2025 (Area No. 4). Area Nos. 2 and 4 will be delivered in blue top condition with onsite backbone streets, and no private in-tract work. Area No. 5 is currently contemplated for the development of for-rent multifamily apartments and will be delivered as a super pad. In mid-July 2021, UPI and CVWD clarified the status and estimated timing of CVWD’s construction of the reservoir facilities under the Water Installation Agreement, for which UPI is required to contribute 14.5% of the cost based on the estimated peak day domestic water demands and required fire flow for the Project. The reservoir facilities have been completed and are operational. The anticipated phasing plan as of January 1, 2024, is set forth below. PHASING PLAN Area Product Quantity Construction Start 1 Village E 110 Village D (portion) 78 Village F (portion) 48 236 In Process 2 Village D (portion) 48 Village G 98 146 April 2024 3 Village C 120 Village F (portion) 49 169 In Process 4 Village H 72 Village A 110 182 July 2025 5 Apartments 336 July 2024 Total Number of Projected Residential Units: 1,069 ______________________ Source: UPI. Page 905 of 1128 As of January 1, 2024, the current estimated product mix for the homes for sale within the District and their anticipated base prices is set forth below. The table below reflects projected sales prices of residential units to end users and, therefore, excludes the 336 for-rent apartment units currently proposed for Area 5 of the Project. TABLE 10 CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) PROPOSED UNIT MIX (HOMES FOR SALE) (excludes for-rent apartment units proposed for Area 5) Village Unit Type No. Available Average Home Size Average Lot Size Average Base Price Average Base Price/SF Options Premiums Total Price Price per SF Village A Townhome 110 1,742 1,800 $426,790 $245 $29,619 $ 6,188 $462,598 $266 Village C Single-Family (60x100) 120 2,954 6,000 708,960 240 49,202 10,280 768,442 260 Village D Single-Family (55x90) 126 2,550 4,950 690,889 271 57,312 31,174 799,375 306 Village E Single-Family (2-Pac) 110 2,188 4,050 606,980 277 30,668 17,884 655,532 300 Village F Single-Family (Alley) 97 2,168 3,200 581,910 268 37,148 21,339 640,397 295 Village G Single-Family (50x100) 98 2,653 5,000 655,200 247 45,471 9,500 710,171 268 Village H Single-Family (4-Pac) 72 2,214 3,750 553,500 250 38,413 8,026 599,939 271 SF Total/Weighted Avg: 733 2,371 4,171 $608,934 $257 $41,722 $15,536 $666,193 $281 __________________________ Source: UPI. Page 906 of 1128 An agreement between UPI and Woodbridge Homes (“WPG”) (Woodbridge Pacific Group https://woodbridgepacific.com) to develop the 236 homes in Area No. 1 was signed on March 30, 2021. The contract provides for UPI to issue a license to WPG to build homes per the City-approved architectural plans. Upon sale to an individual homebuyer, UPI will initially convey the parcel to WPG, and WPG will convey the home to the individual homebuyer. UPI will retain responsibility for paying the Special Taxes on property until the property is transferred to the homeowners. WPG provided a deposit of over $1 million that was released to UPI upon expiration of the final due diligence period. The deposit will be applied ($5,000/lot) to the base lot price paid to UPI. UPI will provide the capital necessary for WPG to construct the homes and earn a market return on this capital. Additionally, there is a profit sharing arrangement whereby UPI will receive 75% of the net sales proceeds after WPG pays UPI for: (i) costs to build the home plus a return on those costs; (ii) the base price of the lot; and then WPG receives a: (a) return of their overhead, and (b) agreed upon profit margin. For Areas 2 and 4, UPI intends to perform the horizontal development and sell finished or blue top lots to builders as soon as practically feasible. Area 5 is planned for an apartment project and UPI intends to sell the site to an apartment developer that will be responsible for a majority of the land development costs. Area 5 could be sold and developed at any time. The anticipated schedule as of January 1, 2024 of lot sales to bui lders, construction of homes and is set forth below. ESTIMATED CONSTRUCTION AND SALES SCHEDULE Area Horizontal Improvements Begin Lot Sales Begin Home Sales Begin 3 In process In process March 2024 2 April 2024 Q2 2024 January 2025 4 January 2026 Q2 2024 January 2025 _______________________ Source: UPI. Financing Plan. UPI - UPI has committed to invest up to $76.6 million toward the development of the property within the District. That investment amount included the land purchase price of $20 milli on, as well as additional investment of up to $56.6 million to complete UPI’s portion of the improvements to the property. The Project is not expected to be financed with debt financing nor is there existing debt financing on the property. Notwithstanding the belief of UPI that it will have sufficient funds to complete its planned development in the District, no assurance can be given that sources of financing available to UPI will be sufficient to complete the property development, that UPI will be able to sell to builders and that home construction will be completed as currently anticipated. If and to the extent that financing is inadequate to pay the costs to complete UPI’s planned development in the District and other financing is not put into place, there could be a shortfall in the funds required to complete the proposed development by UPI, UPI may not able to sell to builders and portions of the Project may not be developed. The development and financing plans discussed above are solely projections as of the dates indicated in this Official Statement. Such plans are subject to change. No assurance can be given that such plans will remain in their current state or that the plans will ultimately be carried out according to the discussions set forth above. Toll – [TO COME] Page 907 of 1128 50 SPECIAL RISK FACTORS The Bonds have not been rated by any rating agency, and the purchase of the Bonds involves significant risks that are not appropriate for certain investors. The following is a discussion of certain risk factors which should be considered, in addition to other matters set forth herein, in evaluating the investment quality of the Bonds. The Bonds have not been rated by a rating agency. This discussion does not purport to be comprehensive or definitive and does not purport to be a complete statement of all factors which may be considered as risks in evaluating the credit quality of the Bonds. The occurrence of one or more of the events discussed herein could adversely affect the ability or willingness of property owners in the District to pay their Special Taxes when due. Such failures to pay Special Taxes could result in the inability of the District to make full and punctual payments of debt service on the Bonds. In addition, the occurrence of one or mo re of the events discussed herein could adversely affect the value of the property in the District. See “— Property Values” and “— Limited Secondary Market” below. The principal source of payment of debt service on the Bonds will be payments of the Special Tax made with respect to the Taxable Property. As discussed under “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS — Special Taxes,” the Special Tax is to be levied annually against all such Taxable Property either at the maximum rate authorized by the Rate and Method or at such lower rates as are determined by the District Administrator to raise sufficient funds to comply with the agreements, conditions, covenants and terms contained in the Indenture, and in accordance with the Act. The Special Tax is to be collected on the tax roll of the District at the same time and in the same manner as general ad valorem real property taxes are collected. The Special Tax cannot be levied at a tax rate higher than the maximum tax rate even if the maximum tax rate will not produce sufficient Net Taxes to pay the principal and interest then payable with respect to the Bonds. See discussions below under “— Levy of the Special Tax” and “— Collection of the Special Tax.” Payment of the Special Tax levied on a parcel is secured by a continuing lien against such parcel. In the event an installment of the Special Tax included in the tax bill for a parcel of Taxable Property is not paid when due, the District has covenanted to institute foreclosure proceedings in court to cause the parcel to be sold in order to attempt to recover the delinquent amount from the sale proceeds. Foreclosure and sale may not always result in the recovery of the full amount of delinquent installments of the Special Tax. See “— Collection of the Special Tax.” The sufficiency of the foreclosure sale proceeds to cover the delinquent amount depends in part upon the market for and the value of the parcel at the time of the sale. Sufficiency of the foreclosure sale proceeds to cover a delinquency may also depend upon the value of prior or parity liens and similar claims. Further, other governmental claims, such as hazardous substance claims, may affect the realizable value even though such claims may not rise to the status of liens. See “— Hazardous Substances.” Timely foreclosure and sale proceedings with respect to a parcel of Taxable Property may be forestalled or delayed by a stay in the event the owner of the parcel becomes the subject of bankruptcy proceedings. Not only may foreclosure and sale proceedings be forestalled or delayed, but the sale of a parcel may also be similarly affected by a bankruptcy stay. Further, should the stay not be lifted, payment of the Special Tax may be subordinated to bankruptcy law priorities. See “— Enforcement Delays — Bankruptcy.” Although bankruptcy proceedings may forestall or delay a foreclosure and sale or a tax sale of a delinquent parcel of Taxable Property, the Special Tax is secured by a lien which, assuming proper procedures are followed, may be enforced against the parcel. There may not be any recourse against a bankrupt property owner since the owner is not personally obligated to pay the Special Tax. Further, if proper disclosure of the authorization of the Special Tax is not made to the owner, the willingness or ability of an owner to pay the Special Tax may be adversely affected. See “— Payment of the Special Tax is Not a Personal Obligation of the Owners.” The District is not obligated to advance funds to pay such debt service except from moneys on deposit in the Reserve Fund. See “— Limited Obligations.” Page 908 of 1128 51 Even if debt service is timely paid, interest on the Bonds may have to be included in the gross income of the owner of the Bonds by reason of some circumstance occurring subsequent to issuance of the Bonds, there by reducing the after-tax yield. See “— Loss of Tax Exemption.” Concentration of Ownership UPI will be responsible for the payment of approximately 53%, Toll will be responsible for the payment of approximately 32%, and individual homeowners will be responsible for approximately 15% of the projected Special Taxes levied on Taxable Property within the District in Fiscal Year 2024-25. A number of factors, many of which are beyond the control of UPI and Toll could have an adverse impact on the development of the Project, value of the Project and UPI’s and Toll’s willingness or ability to pay Special Taxes, including adverse changes in the national economy, failure of the development to proceed as planned, competition from other residential development in the vicinity of the District. energy costs, governmental rules and policies (including changes in zoning and land use), potential environmental and other liabilities, and tax laws affecting real estate. There may be an adverse impact on the development of the Project and UPI’s and Toll’s willingness or ability to pay Special Taxes. The timely payment of the principal of and interest on the Bonds depends upon the willingness and ability of UPI, Toll and future landowners in the District to pay the Special Taxes when due. The willingness and ability of the owners of UPI and Toll, as well as other property owners, to pay property taxes and the Special Taxes could be adversely affected by changes in general or local economic conditions, fluctuations in the real estate market and other factors. A description of the Project, Toll, and UPI is set forth under the caption “PROPERTY OWNERSHIP AND THE DEVELOPMENT.” The City, the District, the Municipal Advisor, and the Underwriter make no representation as to the accuracy or completeness of such information. Failure of UPI and Toll (or any future owner of a significant amount of taxable property within the District) to pay Special Taxes when due could cause the depletion of the Reserve Account held under the Indenture prior to reimbursement from the resale of foreclosed property and repayment of the delinquent Special Taxes. In such an event, there may be insufficient revenues from Special Taxes to meet the District’s obligations under the Indenture. In that event, there could be a delay or failure in payments of the principal of and interest on the Bonds. Risks of Real Estate Secured Investments Generally The Bond Owners will be subject to the risks generally incident to an investment secured by real estate, including, without limitation: (i) adverse changes in local market conditions, such as changes in the market value of real property in the vicinity of the District, the supply of or demand for competitive properties in such area, and the market value of buildings and/or sites in the event of sale or foreclosure; (ii) changes in real estate tax rates and other operating expenses, governmental rules (including, without limitation, zoning laws and laws relating to endangered species and hazardous materials) and fiscal policies; (iii) natural disasters (including, without limitation, earthquakes, wildfires and floods), which may result in uninsured losses; (iv) adverse changes in local market conditions; and (v) increased delinquencies due to rising mortgage costs and other factors. No assurance can be given that the property owners within the District will pay Special Taxes in the future or that they will be able to pay such Special Taxes on a timely basis. See the caption “— Enforcement Delays — Bankruptcy” for a discussion of certain limitations on the District’s ability to pursue judicial proceedings with respect to delinquent parcels. Construction Risks There can be no assurance that the development, construction and completion will be accomplished on schedule and within budget. The failure of any or all of these measures or the realization of other development, construction or completion risks, including, but not limited to, delays in the issuance of required permits or other necessary approvals, strikes, shortages of material s, fire, adverse sub-surface conditions and adverse weather conditions, could result in a failure to complete or a delay in the completion; or an increase in the cost of the completion, or both. No assurance can be made that UPI would have sufficient funds to complete construction in Page 909 of 1128 52 the event of a significant cost overrun. Any such failure or cost increase may adversely affect UPI’s ability or willingness to pay the Special Taxes as they become due and payable. Insufficiency of Special Tax Revenues As discussed below, the Special Taxes may not produce revenues sufficient to pay the debt service on the Bonds either due to nonpayment of the amounts levied or because acreage within the District becomes exempt from taxation due to the transfer of title to a public agency. In order to pay debt service on the Bonds, it is generally necessary that the Special Taxes be paid in a timely manner. Should the Special Taxes not be paid on time, the District has established a Reserve Account under the Indenture to be maintained in an amount equal to the Reserve Requirement to pay debt service on the Bonds to the extent other funds are not available. See “SOURCES OF PAYMENT FOR THE BONDS — Reserve Account of the Special Tax Fund.” The District will covenant in the Indenture to maintain in the Reserve Account an amount equal to the Reserve Requirement, subject, however, to the availability of Net Taxes in amounts sufficient to do so and to the limitation that the District may not levy the Special Tax in any Fiscal Year at a r ate in excess of the maximum amounts permitted under the Rate and Method. See Appendix D hereto. As a result, if a significant number of Special Tax delinquencies occurs within the District, the District could be unable to replenish the Reserve Account to the Reserve Requirement due to the limitations on the amount of the Special Tax that may be levied. If such defaults were to continue in successive years, the Reserve Account could be depleted and a default on the Bonds could occur. The Act provides that, if any property within the District not otherwise exempt from the Special Tax is acquired by a public entity through a negotiated transaction, or by gift or devise, the Special Tax will continue to be levied on and enforceable against the public entity that acquired the property. In addition, the Act provides that, if property subject to the Special Tax is acquired by a public entity through eminent domain proceedings, the obligation to pay the Special Tax with respect to that property is to be treated as i f it were a special assessment and be paid from the eminent domain award. The constitutionality and operation of these provisions of the Act have not been tested in the courts, but it is doubtful that they would be upheld as to, for example, property owned by the federal government. If for any reason property within the District becomes exempt from taxation by reason of ownership by a non-taxable entity such as the federal government or another public agency, subject to the limitation of the Maximum Special Tax, the Special Tax will be reallocated to the remaining taxable parcels within the District. This would result in the owners of such property paying a greater amount of the Special Tax and could have an adverse impact upon their willingness and/or ability to pay the Special Tax. Moreover, if a substantial portion of additional land within the District became exempt from the Special Tax because of public ownership, or otherwise, the Maximum Special Tax which could be levied upon the remaining acreage might not be sufficient to pay principal of and interest on the Bonds when due and a default will occur with respect to the payment of such principal and interest. The District will covenant in the Indenture that, under certain circumstances, it will institute foreclosure proceedings to sell any property with delinquent Special Taxes in order to obtain funds to pay debt service on the Bonds. If foreclosure proceedings were ever instituted, any mortgage or deed of trust holder could, but would not be required to, advance the amount of the delinquent Special Tax to protect its security interest. See “SOURCES OF PAYMENT FOR THE BONDS — Special Taxes — Proceeds of Foreclosure Sales” for provisions which apply in the event of such foreclosure and which the District is required to follow in the event of delinquencies in the payment of the Special Tax. In the event that sales or foreclosures of property are necessary, there c ould be a delay in payments to Owners of the Bonds (if the Reserve Account has been depleted) pending such sales or the prosecution of such foreclosure proceedings and receipt by the City on behalf of the District of the proceeds of sale. The District may adjust the future Special Tax levied on taxable parcels in the District, subject to limitations described above under the caption “THE DISTRICT—Rate and Method of Apportionment,” to provide an amount required to pay interest on and principal of the Bonds, and the amount, if any, necessary to replenish the Reserve Account to an amount Page 910 of 1128 53 equal to the Reserve Requirement, and to pay all current expenses. There is, however, no assurance that the total amount of the Special Tax that could be levied and collected against taxable parcels in the District will be at all times sufficient to pay the amounts required to be paid by the Indenture, even if the Special Tax is levied at the Maximum Special Tax rates. See “— Enforcement Delays – Bankruptcy.” No assurance can be given that the real property subject to sale or foreclosure will be sold, or if sold, that the proceeds of sale will be sufficient to pay any delinquent installments of the Special Tax. The Act does not require the City to purchase or otherwise acquire any lot or parcel of property to be sold at foreclosure if there is no other purchaser at such sale. The Act and the Indenture do specify that the Special Tax will have the same lien priority as for ad valorem property taxes in the case of delinquency. Section 53356.6 of the Act requires that property sold pursuant to foreclosure under the Act be sold for not less than the amount of judgment in the foreclosure action, plus post judgment interest and authorized costs, unless the consent of the owners of 75% of the Outstanding Bonds is obtained. Prior to July 1, 1983, the right of redemption from foreclosure sales was limited to a period of one year from the date of sale. Under legislation effective July 1, 1983, the statutory right of redemption from such foreclosure sales has been repealed. However, a period of 20 days must elapse after the date on which the notice of levy of the interest in real property was served on the judgment debtor before the sale of such lot or parcel can be made. Furthermore, if the purchaser at the sale is the judgment creditor (e.g., the District), an action may be commenced by the delinquent property owner within 90 days after the date of sale to set aside such sale. The constitutionality of the aforementioned legislation, which repeals the one year redemption period, has not been tested and there can be no assurance that, if tested, such legislation will be upheld. (Section 701.680 of the Code of Civil Procedure of the State.) Property Values The value of the property within the District is a critical factor in determining the investment quality of the Bonds. If a property owner is delinquent in the payment of Special Taxes, the District’s only remedy is to commence foreclosure proceedings against the delinquent parcel in an attempt t o obtain funds to pay the Special Taxes. Land development and land values could be adversely affected by economic and other factors beyond the District and the City’s control, such as a general economic downturn, adverse judgments in future litigation that could affect the scope, timing or viability of development, relocation of employers out of the area, stricter land use regulations, shortages of water, electricity, natural gas or other utilities, destruction of property caused by earthquake, flood or other natural disasters, environmental pollution or contamination, or unfavorable economic conditions which will adversely impact the security underlying the Special Taxes. The Appraisal Report indicates the Appraiser’s opinion as to the market value of the properties referred to therein as of the date and under the conditions specified therein. The Appraiser’s opinion reflects conditions prevailing in the applicable market as of the Date of Value. The Appraiser’s opinion does not predict the future value of the subject property, and there can be no assurance that market conditions will not change adversely in the future. See “THE DISTRICT — Appraisal Report” and “APPENDIX C — APPRAISAL REPORT.” Prospective purchasers of the Bonds should not assume that the taxable land within the District could be sold for the appraised amount at a foreclosure sale for delinquent Special Taxes. In arriving at the estimate of market value of the Appraised Property, the Appraiser assumes that any sale will be unaffected by undue stimulus and will occur following a reasonable marketing period, which is not always present in a foreclosure sale. See Appendix C for a description of other assumptions made by the Appraiser and for the definitions and limiting conditions used by the Appraiser. Any event which causes one of the Appraiser’s assumptions to be untrue could result in a reduction of the value of the taxable land and improvements within the District from the market value estimated by the Appraiser. Page 911 of 1128 54 No assurance can be given that any bid will be received for a parcel with delinquent Special Taxes offered for sale at foreclosure or, if a bid is received, that such bid will be sufficient to pay all delinquent Special Taxes. See “SOURCES OF PAYMENT FOR THE BONDS — Special Taxes — Proceeds of Foreclosure Sales.” Neither the District nor the City has evaluated development risks. Since these are largely business risks of the type that the landowner customarily evaluates individually, and inasmuch as changes in land ownership may well mean changes in the evaluation with respect to any particular parcel, the District is issuing the Bonds without regard to any such evaluation. Thus, the creation of the District and the issuance of the Bonds in no way implies that either the City or the District has evaluated these risks or the reasonableness of these risks. On the contrary, the City and the District have made no such evaluation and are undertaking acquisition and construction of the facilities being financed by the Bonds even though these risks may be serious and may ultimately halt or slow the progress of land development and forestall the realization of Taxable Property values in the event of delinquency and foreclosure. Exempt Properties Certain properties are exempt from the Special Tax in accordance with the Rate and Method. In addition, the Act provides that properties or entities of the State, federal or local government are exempt from the Special Tax; provided, however, that property in the District acquired by a public entity through a negotiated transaction or by gift or devise, which is not otherwise exempt from the Special Tax, will continue to be subject to the Special Tax. In addition, the Act provides that if property subject to the Special Tax is acquired by a public entity through eminent domain proceedings, the obligation to pay the Special Tax with respect to that property is to be treated as if it were a special assessment. The constitutionality and operation of these provisions of the Act have not been tested. In particular, insofar as the Act requires payment of the Special Tax by a federal entity acquiring property in the District, it may be unconstitutional. If for any reason property in the District becomes exempt from taxation by reason of ownership by a nontaxable entity such as the federal government or another public agency, subject to the limitation of the maximum authorized rates, the Special Tax will be reallocated to the remaining Taxable Properties in the District. This would result in the owners of such property paying a greater amount of the Special Tax and could have an adverse impact upon the timely payment of the Special Tax. Moreover, if a substantial portion of property in the District becomes exempt from the Special Tax because of public ownership, or otherwise, the Maximum Annual Special Tax which could be levied upon the remaining acreage might not be sufficient to pay principal of and interest on the Bonds when due and a default would occur with respect to the payment of such principal and interest. Climate Change According to the California Climate Change Fourth Assessment for the Inland Desert Regions, which was published in 2018, the region covering the City, the region will continue to experience, among other things, (a) extremely high maximum temperatures, (b) increased energy needs for cooling to compensate for a rise in temperatures, and (c) increased water stress in an already water -limited region. Such climate change risks may exacerbate the impact of natural disasters listed below. See “— Geologic, Topographic and Climatic Conditions.” Geologic, Topographic and Climatic Conditions The District, like all California communities, may be subject to unpredictable seismic activity, fires, flood, or other natural disasters. Southern California is a seismically active area. Seismic activity represents a potential risk for damage to buildings, roads, bridges and property within the District. In addition, land susceptible to seismic activity may be subject to liquefaction during the occurrence of such event. The District is not located within a designated fault zone and located in an area of minimal flood hazard. Page 912 of 1128 55 The City shares many of the hazards associated with earthquakes faults in Southern California. There are three major faults and several minor faults that could impact the City. The major faults include the San Andreas Fault near San Gorgonio Pass, the Palm Desert Fault, and the Elsinore Fault. Historically, the San Andreas Fault is the most active among the fault network that cuts through rocks of the California coastal region. The entire San Andreas Fault system is more than 800 miles long and extends to depths of at least 10 miles within the earth. The San Andreas Fault in California forms a continuous, narrow break in the earth’s crust that extends from northern California southward to Cajon Pass near San Bernardino; southeastward from Cajon Pass. Several branching faults, including the San Jacinto and Banning faults, share the movement of the crustal plates as the fault continues to the south east, on to the Salton Sea and on to Baja California Sea of Cortez. Recent studies of the eastern section of the San Andreas near San Gorgonio Pass reveal that this area is more advanced in the cycle of strain accumulation than the western area at the Cajon Pass. Another major fault zone that traverses Riverside County is the Elsinore Fault. The Elsinore Fault Zone is one of the largest in southern California. The main trace of the Elsinore fault zone has only seen one historical event greater than magnitude 5.2 – the earthquake of 1910, a magnitude 6 shock near Temescal Valley. In recent years, portions of Southern California have experienced wildfires that have burned thousands of acres and destroyed thousands of homes and structures, even in areas not previously thought to be prone to wildfires. While the District is not aware of any particular risk of wildfire within the District, there can be no assurances that wildfires won’t occur within the District. Property damage due to wildfire could result in a significant decrease in the market value of property in District and in the ability or willingness of property owners to pay Special Taxes when due. CAL FIRE has made recommendations of Very High Fire Severity Zones for the City. In the event of a severe earthquake, fire, flood or other natural disaster, there may be significant damage to both property and infrastructure in the District. As a result, a substantial portion of the property owners may be unable or unwilling to pay the Special Taxes when due. In addition, the value of land in the District could be diminished in the aftermath of such a natural disaster, reducing the resulting proceeds of foreclosure sales in the event of delinquencies in the payment of the Special Taxes. Flood Zone The City has experienced numerous winter storm flood and high wind damages in the past. On August 20, 2023, Hurricane Hilary caused an overflow of a major drainage channel and the Spanish Walk neighborhood in North Palm Desert flooded. The Mayor of the City made a Proclamation of Local Emergency on August 20, 2023. This will allow the City of Palm Desert to submit for maximum reimbursements of damages incurred in the City. Governor Newsom Declared a State of Emergency, which will allow for the State to request a Federal Emergency be declared by FEMA. Heavy rains can lead to problems with storm drainage and create localized flood problems. The District is not located within a Special Flood Hazard Area. flood problems. The District is not located within a Special Flood Hazard Area. Drought California has been subject to droughts from time -to-time in the past. The State of California is currently in a statewide drought with regions ranging from severe drought to exceptional drought. Riverside County is experiencing severe to extreme drought conditions. Water service to the City and the District is provided by the CVWD. CVWD faces various challenges in the continued supply of water to the City. A description of these challenges as well as a variety of other operating information with respect to CVWD is included in certain disclosure documents prepared by CVWD. CVWD periodically prepares official statements and other disclosure documents in connection with its bonds and other obligations. CVWD has also entered into certain continuing disclosure agreements pursuant to which CVWD is contractually obligated for the benefit of owners of certain of its outstanding obligations to file certain annual reports, including audited financia l statements and notice of certain events, pursuant to Rule 15c2-12 promulgated under the Securities Exchange Act of 1934, as amended Page 913 of 1128 56 (“Rule 15c2-12”). Such official statements, other disclosure documents, annual reports and notices (collectively, the “CVWD Information”) are filed with the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access system (“EMMA”) at http://emma.msrb.org. The CVWD Information is not incorporated herein by reference thereto, and the City makes no representation as to the accuracy or completeness of such information. CVWD HAS NOT ENTERED INTO ANY CONTRACTUAL COMMITMENT WITH THE CITY, THE TRUSTEE OR THE OWNERS OF THE BONDS TO PROVIDE CVWD INFORMATION TO THE CITY OR THE OWNERS OF THE BONDS. Although the City does not believe any future drought would impact development in the District, no assurances can be given in this regard and no assurance can be given that a future drought affecting homes in the District would not result in decreased values. In the event that the CVWD’s water supply is severely limited or cut off by virtue of future actions beyond its control resulting from ongoing or future drought conditions, development within the District may be delayed or even stopped. Should the City need to restrict development, it must do so Citywide and cannot single out the District property in restricting development activity. In turn, the anticipated diversity of ownership of land within the District could also be reduced. Furthermore, such an increased period of concentrated ownership of undeveloped land increases the potential negative impact of any bankruptcy or other financial difficulties experienced by the owners of undeveloped land in the District. Hazardous Substances While government taxes, assessments and charges are a common claim against the value of a parcel, other less common claims may also be relevant. One of the most serious in terms of the potential reduction in the value of a parcel is a claim with regard to a hazardous substance. In general, the owners and operators of a parcel may be required by law to remedy conditions relating to releases or threatened releases of hazardous substances. The federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, sometimes referred to as “CERCLA” or the “Super Fund Act,” is the most well-known and widely applicable of these laws, but California laws with regard to hazardous substances are also stringent and similar in effect. Under many of these laws, the owner (or operator) is obligated to remedy a hazardous substance condition of a parcel whether or not the owner (or operator) had anything to do with creating or handling the hazardous substance. The effect, therefore, should any of the parcels within the District be affected by a hazardous substance, is to reduce the marketability and value by the costs of remedying the condition. The District is not aware of the presence of any federally or state classified hazardous substances in violation of any environmental laws, located on the property within the District. However, it is possible that such materials do currently exist and that the District is not aware of them. It is possible that property in the District may be liable for hazardous substances in the future as a result of the existence, currently, of a substance presently classified as hazardous but which has not been released or the release of which is not presently threatened, or the existence, currently, on the property of a substance not presently classified as hazardous but which may in the future be so classified. Additionally, such liabilities may arise not simply from the existence of a hazardous substance but from the method of handling such substance. All of these possibilities could have the effect of reducing the value of the applicable property. Cybersecurity The City, like many other public and private entities, relies on a large and complex technology environment to conduct its operations. As a recipient and provider of personal private or sensitive information, the City is subject to multiple cyber threats including, but not limited to, hacking, viruses, malware and other attacks on computer and other sensitive digital networks and systems. Entities or individuals may attempt to gain unauthorized access to the City’s digital systems for the purposes of misappropriating assets or information or causing operational disruption and damage. To date, the City has not experienced an attack on its computer operating systems which resulted in a breach of its cybersecurity system that are in place. However, no assurances Page 914 of 1128 57 can be given that the City’s effort to manage cyber threats and attacks will be successful or that any such attack will not materially impact the operations or finances of the City. Depletion of Reserve Account The Reserve Account is to be maintained at an amount equal to the Reserve Requirement. Money in said fund may be used to pay debt service on the Bonds in the event the proceeds of the levy and collection of the Special Tax against property in the District are insufficient. If funds in the Reserve Account are used to pay debt service on the Bonds, the funds can be replenished from the proceeds of the levy and collection of the Special Tax that are in excess of the amount required to pay all amounts to be paid pursuant to the Indenture. However, no replenishment from the proceeds of a levy of the Special Tax can occur as long as the proceeds that are collected from the levy of the Special Tax at the maximum tax rates, together with other available funds, remain insufficient to pay all such amounts. Thus it is possible that the Reserve Account will be depleted by its use to pay such amounts and will not be replenished by the levy of the Special Tax. There is no assurance that the amount in the Reserve Account will, at any particular time, be sufficient to pay all such amounts or that any amounts of the Reserve Requirement used for debt service on the Bonds will be fully replenished from the proceeds of the levy and collection of the Special Tax. Enforcement Delays – Bankruptcy The payment of the Special Tax and the ability of the District to foreclose the lien of a delinquent unpaid tax, as discussed in “SOURCES OF PAYMENT FOR THE BONDS,” may be limited by bankruptcy, insolvency or other laws generally affecting creditors’ rights or by the laws of the State of California relating to judicial foreclosure. In addition, the prosecution of a foreclosure action could be delayed due to crowded local court calendars or delays in the legal process. The various legal opinions to be delivered concurrently with the delivery of the Bonds (including Bond Counsel’s approving legal opinion) will be qualified as to the enforceability of the various legal instruments by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights, by the application of equitable principles and by the exercise of judicial discretion in appropriate cases. Although bankruptcy proceedings would not cause the obligation to pay the Special Tax to become extinguished, the bankruptcy of a property owner could result in a delay in prosecuting superior court foreclosure proceedings because federal bankruptcy laws may provide for an automatic stay of foreclosure and sale of tax sale proceedings. Any such delays could increase the likelihood of a delay or default in payment of the principal of and interest on the Bonds and the possibility of delinquent tax installments not being paid in full. Moreover, if the value of the subject property is less than the lien of the Special Tax, such excess could be treated as an unsecured claim by the bankruptcy court. Further, should remedies be exercised under the federal bankruptcy laws against Taxable Property, payment of the Special Tax may be subordinated to bankruptcy law priorities. Thus, certain claims may have priority over the Special Tax in a bankruptcy proceeding even though they would not outside of a bankruptcy proceeding. Increasing Mortgage Interest Rates Between approximately November 2021 and January 2024, mortgage interest rates for 30-year mortgage loans have increased from approximately 3.1% to [___]%. Increases in mortgage interest rates could have a negative impact on the estimated absorption rates of the planned for-sale residential units in the District described herein. With respect to entry-level households, increased mortgage interest rates may adversely impact the affordability of homes and may increase mortgage payment levels for owning a lower-priced home relative to renting a residence, thereby making purchasing less attractive. With respect to move -up households, higher mortgage interest rates may impact the desire of current homeowners to move from their present home due to the fact that their present home likely has a relatively low mortgage interest rate. In addition, in such instances, a new home would likely have a higher interest rate on a new mortgage loan as well as a higher purchase price and property taxes. Such considerations may decrease the desire for move -up households to purchase a new home. Page 915 of 1128 58 The foregoing factors could reduce demand for and/or the ability to achieve the sales prices of the planned for - sale homes within the District as described herein. Impact of Economic Conditions on the Development in the District Certain events and factors which negatively affect the regional, State and national economies could have an adverse effect on the pace at which the Developer can complete future homes, and demand by, and the ability of individuals to purchase homes within the District. Such events and factors could include rising inflation and interest rates, persistent supply chain issues, further impacts of the COVID -19 pandemic and global market instability caused by the war in Ukraine. Any adverse impact of the foregoing and other economic factors on the Project in the District and the real estate market in general cannot be predicted. FDIC/Federal Government Interests in Properties The ability of the District to collect interest and penalties specified by the Act and to foreclose the lien of delinquent Special Taxes may be limited in certain respects with regard to parcels in which the Federal Deposit Insurance Corporation (the “FDIC”), or other federal government entities such as Fannie Mae or Freddie Mac, has or obtains an interest. In the case of the FDIC, in the event that any financial institution making a loan which is secured by parcels is taken over by the FDIC and the applicable Special Tax is not paid, the remedies available to the District may be constrained. The FDIC’s policy statement regarding the payment of state and local real property taxes (the “Policy Statement”) provides that taxes other than ad valorem taxes which are secured by a valid lien in effect before the FDIC acquired an interest in a property will be paid unless the FDIC determines that abandonment of its interests is appropriate. The Policy Statement provides that the FDIC generally will not pay installments of non-ad valorem taxes which are levied after the time the FDIC acquires its fee interest, nor will the FDIC recognize the validity of any lien to secure payment except in certain cases where the Resolution Trust Corporation had an interest in property on or prior to December 31, 1995. Moreover, the Policy Statement provides that, with respect to parcels on which the FDIC holds a mortgage lien, the FDIC will not permit its lien to be foreclosed out by a taxing authority without its specific consent, nor will the FDIC pay or recognize liens for any penalties, fines or similar claims imposed for the nonpayment of taxes. The FDIC has taken a position similar to that expressed in the Policy Statement in legal proceedings brought against Orange County, California, in United States Bankruptcy Court and in Federal District Court. The Bankruptcy Court issued a ruling in favor of the FDIC on certain of such claims. Orange County appealed that ruling, and the FDIC cross-appealed. On August 28, 2001, the Ninth Circuit Court of Appeals issued a ruling favorable to the FDIC except with respect to the payment of pre-receivership liens based upon delinquent property tax. The District is unable to predict what effect the application of the Policy Statement would have in the event of a delinquency with respect to parcels in which the FDIC has or obtains an interest, although prohibiting the lien of the FDIC to be foreclosed out at a judicial foreclosure sale would prevent or delay the foreclosure sale. In the case of Fannie Mae and Freddie Mac, in the event a parcel of Taxable Property is owned by a federal government entity or federal government sponsored entity, such as Fannie Mae or Freddie Mac, or in the event a private deed of trust secured by a parcel of Taxable Property is owned by a federal government entity or federal government sponsored entity, such as Fannie Mae or Freddie Mac, the ability to foreclose on the parcel or to collect delinquent Special Taxes may be limited. Federal courts have held that, based on the supremacy clause of the United States Constitution, in the absence of Congressional intent to the contrary, a state or local agency cannot foreclose to collect delinquent taxes or assessments if foreclosure would impair the federal government interest. This means that, unless Congress has otherwise provided, if a federal government entity owns a parcel of Taxable Property but does not pay taxes and assessments levied on the parcel (including Special Taxes), the Page 916 of 1128 59 applicable state and local governments cannot foreclose on the parcel to collect the delinquent taxes and assessments. Moreover, unless Congress has otherwise provided, if the federal government has a mortgage interest in the parcel and the District wishes to foreclose on the parcel as a result of delinquent Special Taxes, the property cannot be sold at a foreclosure sale unless it can be sold for an amount sufficient to pay delinquent taxes and assessments on a parity with the Special Taxes and preserve the federal government’s mortgage interest. The District’s remedies may also be limited in the case of delinquent Special Taxes with respect to parcels in which other federal agencies (such as the Internal Revenue Service and the Drug Enforcement Administration) have or obtain an interest. Direct and Overlapping Indebtedness The ability of an owner of property within the District to pay the applicable Special Taxes could be affected by the existence of other taxes and assessments imposed upon taxable parcels. See “THE DISTRICT — Direct and Overlapping Debt” herein. The City and other public agencies whose boundaries overlap those of the District could impose additional taxes or assessment liens on the property within the District in order to finance public improvements or services to be located or provided inside of or outside of such area. The lien created on the property within the District through the levy of such additional taxes may be on a parity with the lien of the Special Taxes applicable to the property within the District. The imposition of additional liens on a parity with the Special Taxes may reduce the ability or willingness of property owners to pay the Special Taxes and increase the possibility that foreclosure proceeds will not be adequate to pay delinquent Special Taxes. Effect of Parity Bonds on Credit Quality The District may at any time after the issuance and delivery of the Bonds issue Parity Bonds to finance additional facilities in an aggregate amount not to exceed $50,000,000 (including the Bonds and the 2021 Bonds) payable from the Net Taxes and secured by a lien and charge upon such amounts equal to the lien and charge securing the Bonds and any other Parity Bonds theretofore issued pursuant to the Indenture. Parity Bonds may only be issued subject to specific conditions, which are set forth in the Indenture and with which the District must be in compliance. See “SOURCES OF PAYMENT FOR THE BONDS – Parity Bonds.” If Parity Bonds are issued, the value-to-lien ratio of certain parcels subject to the levy of Special Taxes may be lower than the ratios set forth in this Official Statement. Furthermore, if Parity Bonds are issued, the owners of the Bonds will not have any prior claim on the Special Taxes levied on the property within the District but will have an equal claim with the owner of the Parity Bonds on the Net Taxes. The District expects to issue additional series of bonds up to the remaining balance of bond authorization, which bonds are expected to be secured by Net Taxes on a parity with the Bonds. Such Parity Bonds are expected to be issued once further development occurs. Payment of Special Taxes is not a Personal Obligation of the Property Owners An owner of a taxable parcel is not personally obligated to pay Special Taxes. Rather, Special Taxes are an obligation which is secured only by a lien against the taxable parcel. If the value of a taxable parcel is not sufficient, taking into account other liens imposed by public agencies, to secure fully Special Taxes, the District has no recourse against the property owner. Page 917 of 1128 60 No Acceleration Provision The Indenture does not contain a provision allowing for the acceleration of the Bonds in the event of a payment default or other default under the terms of the Bonds or the Indenture. Limited Obligations The Bonds and interest thereon are not payable from the general funds of the City. Except with respect to the Net Taxes, neither the credit nor the taxing power of the District or the City is pledged for the payment of the Bonds or the interest thereon, and, except as provided in the Indenture, no Owner of the Bonds may compel the exercise of any taxing power by the District or the City or force the forfeiture of any City or District property. The principal of, premium, if any, and interest on the Bonds are not a debt of the City or a legal or equitable pledge, charge, lien or encumbrance upon any of the City’s or the District’s property or upon any of the City’s or the District’s income, receipts or revenues, except the Net Taxes and other amounts pledged under the Indenture. The District’s legal obligations with respect to any delinquent Special Taxes are limited to: (i) payments from the Reserve Account to the extent of funds on deposit therein; and (ii) the institution of judicial foreclosure proceedings under certain circumstances with respect to any parcels for which Special Taxes are delinquent. See the caption “SOURCES OF PAYMENT FOR THE BONDS—Special Taxes—Proceeds of Foreclosure Sales.” The Bonds cannot be accelerated in the event of any default. The obligation to pay Special Taxes does not constitute a personal obligation of the current or subsequent owners of the respective parcels which are subject to such liens. See the caption “—Payment of the Special Tax is Not a Personal Obligation of the Property Owners.” Enforcement of Special Tax payment ob ligations by the District is limited to judicial foreclosure in the Superior Court of California, County of Riverside. There is no assurance that any current or subsequent owner of a parcel subject to a Special Tax lien will be able to pay the amounts due or that such owner will choose to pay such amounts even though financially able to do so. Failure by owners of the parcels to pay Special Tax installments when due, delay in foreclosure proceedings, or the inability of the District to sell parcels that have been subject to foreclosure proceedings for amounts sufficient to cover the delinquent installments of Special Taxes levied against such parcels may result in the inability of the District to make full or timely payments of debt service on the Bonds, which may in turn result in the depletion of the Reserve Account. See the caption “—Enforcement Delays – Bankruptcy.” Ballot Initiatives Articles XIII A, XIII B, XIII C, and XIII D of the California Constitution were adopted pursuant to measures qualified for the ballot pursuant to the State’s constitutional initiative process. From time to time, other initiative measures could be adopted by California voters. The adoption of any such initiative might place limitations on the ability of the State, the City, or other local agencies to increase revenues or to increase appropriations. Proposition 218 An initiative measure entitled “The Right to Vote on Taxes Act” (“Proposition 218”) was approved by the voters at the November 5, 1996 statewide general election. Among other things, Proposition 218 added a new Article XIII C to the California Constitution which states that “. . . the initiative power shall not be prohibited or otherwise limited in matters of reducing or repealing any local tax, assessment, fee or char ge.” The Act provides for a procedure which includes notice, hearing, protest and voting requirements to alter the rate and method of apportionment of an existing special tax. However, the Act prohibits a legislative body from adopting any resolution to reduce the rate of any special tax or terminate the levy of any special tax pledged to repay any debt incurred pursuant to the Act unless such legislative body determines that the reduction or termination of the special tax would not interfere with the timely retirement of that debt. While the application of Proposition 218 in this context has not yet been interpreted by the courts and the matter is not completely free from doubt, it is not likely Page 918 of 1128 61 that Proposition 218 has conferred on the voters the power to effect a repeal or reduction of the Special Tax if the result thereof would be to impair the security of the Bonds. It may be possible, however, for voters or the City Council, acting as the legislative body of the District, to reduce the Special Taxes in a manner which does not interfere with the timely repayment of the Bonds, but which does reduce the maximum amount of Special Taxes that may be levied in any year below the existing levels. Therefore, no assurance can be given with respect to the future levy of Special Taxes in amounts greater than the amount necessary for the timely retirement of the Bonds. Nevertheless, to the maximum extent that the law permits it to do so, the District will covenant that it will not initiate proceedings under the Act to reduce the maximum Special Tax rates for the District. The District also will covenant that, in the event an initiative is adopted which purports to reduce or otherwise alter the Rate and Method, it will commence and pursue legal action in order to preserve its ability to comply with the foregoing covenant. However, no assurance can be given as to the enforceability of the foregoing covenants. Litigation with Respect to Community Facilities Districts Shapiro. The California Court of Appeal, Fourth Appellate District, Division One, issued its opinion in City of San Diego v. Melvin Shapiro (2014) 228 Cal.App.4th 756 (the “San Diego Decision”). The case involved a Convention Center Facilities District (the “CCFD”) established by the City of San Diego (“San Die go”). The CCFD is a financing district much like a community facilities district established under the provisions of the Act. The CCFD is comprised of all of the real property in San Diego. However, the special tax to be levied within the CCFD was to be levied only on hotel properties located within the CCFD. The election authorizing the special tax was limited to owners of hotel properties and lessees of real property owned by a governmental entity on which a hotel is located. Thus, the election was not a registered voter election. Such approach to determining who would constitute the qualified electors of the CCFD was modeled after Section 53326(c) of the Act, which generally provides that, if a special tax will not be apportioned in any tax year on residential property, the legislative body may provide that the vote shall be by the landowners of the proposed district whose property would be subject to the special tax. The Court held that the CCFD special tax election was invalid under the California Constitution because Article XIIIA, Section 4 thereof and Article XIIIC, Section 2 thereof require that the electors in such an election be the registered voters within the district. Horizon. The Sacramento County Superior Court issued a tentative ruling in Horizon Capital Investments, LLC v. City of Sacramento et al. (Case No. 34-2017-80002661). That ruling subsequently became the court’s final order. As described below, this case involved an election to approve the levy of a special tax within a community facilities district (“CFD”) formed under the Act. In 2017, the City of Sacramento initiated proceedings to form a CFD to finance certain costs to operate and maintain a streetcar line. As permitted by the Act, the proposed district included non-contiguous parcels of non-residential property. Because there were fewer than 12 registered voters residing within the territory of the proposed CFD, the City Council submitted the special tax proposed to be levied within the proposed CFD to the owners of land within the proposed CFD, as required by the Act. The proposed special tax received the requisite two-thirds vote in the landowner election. Petitioners Horizon Capital Investments, LLC et al. filed a writ of mandate and complaint for reverse validation and declarator y relief. Petitioners argued, and the superior court agreed in its final ruling, that under section 4(a) of article XIII A of the California Constitution (which provides that “Cities, Counties and special districts, by a two -thirds vote of the qualified electors of such district [sic], may impose special taxes on such district…”) the phrase “qualified electors” means the registered voters of the entire City of Sacramento and not just the owners of the property within the boundaries of the proposed CFD. Citing the San Diego Decision, the tentative ruling states that the phrase “qualified electors of the district” refers to the registered voters of the entity imposing the special tax, which in this case was the City of Sacramento. Because the vote within the proposed CFD was by landowners only and not by all registered voters in the City of Sacramento, the final ruling states that the special tax is invalid. The superior court’s final ruling is not binding upon other courts within the State and does not directl y apply to the District, the Special Tax, or the Bonds. The City of Sacramento did not appeal the decision. Page 919 of 1128 62 The Special Tax Election in the District. With respect to the San Diego Decision, the facts of such case show that there were thousands of registered voters within the CCFD (viz., all of the registered voters in San Diego). At the time of the landowner elections to authorize the Special Tax for the District, there were no registered voters within the District. In the San Diego Decision, the court expressly stated that it was not addressing the validity of landowner voting to impose special taxes pursuant to the Act in situations where there are fewer than 12 registered voters. Thus, by its terms, the court’s holding in the San Diego Decision does not apply to the Special Tax election in the District. Moreover, Section 53341 of the Act provides that any “action or proceeding to attack, review, set aside, void or annul the levy of a special tax…shall be commenced within 30 days after the special tax is approved by the voters.” Similarly, Section 53359 of the Act provides that any action to determine the validity of bonds issued pursuant to the Act be brought within 30 days of the voters approving the issuance of such bonds. The petitioners in Horizon filed the writ of mandate within 30 days of the landowner election. Landowners in the District approved the levy of Special Tax in accordance with the Rate and Method on May 13, 2021. Based on Sections 53341 and 53359 of the Act and analysis of existing laws, regulations, rulings, and court decisions, the City believes that no successful challenge to the Special Tax being levied in accordance with the Rate and Method may now be brought. In connection with the issuance of the Bonds, Bond Counsel expects to deliver its opinion in the proposed form attached hereto as Appendix B. Loss of Tax Exemption As discussed under the heading “TAX EXEMPTION,” interest on the Bonds could cease to be excluded from gross income for purposes of federal income taxation, retroactive to the date the Bonds were issued, as a result of future acts or omissions of the District. In addition, it is possible that future changes in applicable federal tax laws could cause interest on the Bonds to be included in gross income for federal income t axation or could otherwise reduce the equivalent taxable yield of such interest and thereby reduce the value of the Bonds. No Ratings – Limited Secondary Market The District has not applied to have the Bonds rated by any nationally recognized bond rating company, and it does not expect to do so in the future. There can be no guarantee that there will be a secondary market for the Bonds or, if a secondary market exists, that such Bonds can be sold for any particular price. The Bonds and beneficial interest therein may be transferred, only in authorized denominations. Although the District has committed to provide certain financial and operating information, there can be no assurance that such information will be available to Bond owners on a timely basis. The failure to provide the required annual financial information does not give rise to monetary damages but merely an action for specific performance. Occasionally, because of general market conditions, lack of current information, the absence of a credit rating for the Bonds or because of adverse history or economic prospects connected with a particular issue, secondary marketing practices in connection with a particular issue are suspended or terminated. Additionally, prices of issues for which a market is being made will depend upon then prevailing circums tances. Such prices could be substantially different from the original purchase price. Limitations on Remedies Remedies available to the Owners of the Bonds may be limited by a variety of factors and may be inadequate to assure the timely payment of principal of and interest on the Bonds or to preserve the tax-exempt status of interest on the Bonds. Bond Counsel has limited its opinion as to the enforceability of the Bonds and of the Indenture to the extent that enforceability may be limited by bankruptcy, insolvency reorganization, fraudulent conveyance or transfer, moratorium or other similar laws affecting generally the enforcement of creditor’s rights, by equitable principles and by the exercise of judicial discretion and by limitations on remedies again st public agencies in the Page 920 of 1128 63 State of California. The lack of availability of certain remedies or the limitation of remedies may entail risks of delay, limitation or modification of the rights of the Owners. Potential Early Redemption of Bonds from Prepayments Property owners within the District are permitted to prepay their Special Taxes pursuant to the Rate and Method. Such prepayments will result in an extraordinary redemption of the Bonds on the Interest Payment Date for which timely notice may be given under the Indenture following the receipt of the prepayment. The resulting redemption of Bonds purchased at a price greater than par could reduce the otherwise expected yield on such Bonds. See “THE BONDS — Redemption — Extraordinary Redemption from Special Tax Prepayments.” District Not Included in Teeter Plan Although the Riverside County Board of Supervisors has adopted the Alternative Method of Distribution of Tax Levies and Collections and of Tax Sale Proceeds (the “Teeter Plan”) which allows each entity levying secured property taxes in the County to draw on the amount of property taxes levied rather than the amount actually collected, as provided for in Section 4701 et seq. of the California Revenue and Taxation Code, and the City’s ad valorem taxes are included in the Teeter Plan, the District will not be included in the Teeter Plan. Consequently, the District may not draw on the County Tax Loss Reserve Fund in the event of delinquencies in Special Tax payments. CONTINUING DISCLOSURE Pursuant to the District Continuing Disclosure Agreement, the District will covenant for the benefit of the holders and Beneficial Owners of the Bonds to provide certain financial information and operating data relating to the District by April 1 of each year (the “Annual Report”), commencing with the report for April 1, 2024, and to provide the notices of enumerated events will be filed with EMMA. The specific nature of the information to be contained in the Annual Report and the notice of enumerated events is set forth in “APPENDIX E — FORM OF DISTRICT CONTINUING DISCLOSURE AGREEMENT.” These covenants have been made in order to assist the Underwriter in complying with subsection (b)(5) of Rule 15c2-12 (the “Rule”). The District, which is the obligated party under the Disclosure Agreement, has previously entered into an undertaking pursuant to the Rule. Within the last five years, certain filings relating to the public debt obligations of the City and its related entities were incomplete or not made in a timely manner, as requ ired under then outstanding continuing disclosure obligations of the City and its related entities. [INSERT INFORMATION] Pursuant to a Developer Continuing Disclosure Certificate to be executed by UPI and Toll, UPI and Toll will agree to provide, or cause to be provided, to EMMA certain information relating to the development of the Project on a semi-annual basis and notices of certain enumerated events. Furthermore, UPI intends to request the assistance of DPFG, LLC in the preparation of the semi -annual filings. The specific nature of the information to be contained in the Annual Report and the notice of enumerated events is set forth in “APPENDIX E — FORM OF DEVELOPER CONTINUING DISCLOSURE CERTIFICATE.” TAX EXEMPTION The Internal Revenue Code of 1986, as amended (the “Code”), establishes certain requirements which must be met subsequent to the issuance and delivery of the Bonds for interest thereon to be and remain excluded from gross income for federal income tax purposes. Noncompliance with such requirements could cause interest on the Bonds to be included in gross income for federal income tax purposes retroactive to their date of issue. These requirements include, but are not limited to, provisions which limit how the proceeds of the Bonds may be spent and invested, and generally require that certain investment earnings be rebated on a periodic basis to the United States of America. The City has made certifications and representations and have covenanted to maintain the exclusion of the interest on the Bonds from gross income for federal income tax purposes pursuant to Section 103 of the Code. Page 921 of 1128 64 In the opinion of Richards, Watson & Gershon, A Professional Corporation, Bond Counsel, under existing law and assuming the accuracy of such certifications and representations by, and compliance with such covenants of the City, interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax; however, for ta x years beginning after December 31, 2022, interest on the Bonds included in adjusted financial statement income of certain corporations is not excluded from the federal corporate alternative minimum tax. Bond Counsel is also of the opinion that, under existing law, interest on the Bonds is exempt from State of California personal income taxes. Bond counsel expresses no opinion as to any other tax consequences regarding the Bonds. Under the Code, interest on the Bonds may be subject to a federal branch profits tax imposed on certain foreign corporations doing business in the United States and to a federal tax imposed on excess net passive income of certain S corporations. Under the Code, the exclusion of interest from gross income for federal income tax purposes may have certain adverse federal income tax consequences on items of income, deduction or credit for certain taxpayers, including financial institutions, certain insurance companies, recipients of Social Security and Railroad Retirement benefits, those deemed to incur or continue indebtedness to acquire or carry tax-exempt obligations, and individuals otherwise eligible for the earned income tax credit. The applicability and extent of these and other tax consequences will depend upon the particular tax status or other tax items of the owner of the Bonds. Bond Counsel will express no opinion regarding these and other such consequences. Bond Counsel has not undertaken to advise in the future whether any circumstances or events occurring after the date of issue of the Bonds may affect the tax status of interest on the Bonds. Legislation affecting tax - exempt obligations is regularly considered by the United States Congress and may also be considered by the California legislature. Court proceedings may also be filed, the outcome of which could modify the tax treatment of obligations such as the Bonds. No assurance can be given that legislation enacted or proposed, or actions by a court, after the date of issue of the Bonds, will not eliminate, or directly or indirectly reduce the benefit of the exclusion of interest on the Bonds from gross income for federal income tax purposes, or have an adverse effect on the market value or marketability of the Bonds. Investors should consult their own financial and tax advisors to analyze the importance of these risks. For example, federal tax legislation enacted on December 22, 2017, reduced corporate tax rates, modified individual tax rates, eliminated many deductions, and generally eliminated the tax -exempt advance refunding of tax-exempt bonds and other tax advantaged bonds, among other things. In addition, investors in the Bonds should be aware that future legislative actions might increase, reduce, or otherwise change (including retroactively) the financial benefits and the treatment of all or a portion of the interest on the Bonds for federal income tax purposes for all or certain taxpayers. In all such events, the market value of the Bonds may be adversely affected and the ability of holders to sell their Bonds in the secondary market may be reduced. The Bonds are not subject to special mandatory redemption, and the interest rates on the Bonds are not subject to adjustment, in the event of any such change. Certain requirements and procedures contained or referred to in relevant documents may be changed and certain actions may be taken, under the circumstances and subject to the terms and conditions set forth in such documents, upon the advice or with the approving opinion of nationally recognized bond counsel. Bond Counsel expresses no opinion as to any Bond, or the interest thereon, if any such change occurs or action is taken upon the advice or approval of bond counsel other than Richards, Watson & Gershon, A Professional Corporation. If the issue price of a Bond (the first price at which a substantial amount of the bonds of a maturity are sold to the public) is less than the stated redemption price at maturity of such Bond, the difference constitutes original issue discount, the accrual of which is excluded from gross income for federal income tax purposes to the same extent as interest on the Bonds. Further, such original issue discount accrues actuarially on a constant yield method over the term of each such Bond and the basis of each Bond acquired at such initial offering price by an initial purchaser thereof will be increased by the amount of such accrued original issue discount. The accrual of original issue discount may be taken into account as an increase in the amount of tax-exempt income for purposes of determining various other tax consequences of owning such Bonds. Purchasers who acquire Bonds with Page 922 of 1128 65 original issue discount are advised that they should consult with their own independent tax advisors with respect to the state and local tax consequences of owning such Bonds. If the issue price of a Bond is greater than the stated redemption price at maturity of such Bond, the difference constitutes original issue premium, the amortization of which is not deductible from gross income for federal income tax purposes. Original issue premium is amortized over the period to maturity of such Bond based on the yield to maturity of that Bond (or, in the case of a Bond callable prior to its stated maturity, the amortization period and yield may be required to be determined on the basis of an earlier call date that results in the lowest yield on that Bond), compounded semiannually. For purposes of determining gain or loss on the sale or other disposition of such Bond, the purchaser is required to decrease such purchaser’s adjusted basis in such Bond by the amount of premium that has amortized to the date of such sale or other disposition. As a result, a purchaser may realize taxable gain for federal income tax purposes from the sale or other disposition of suc h Bond for an amount equal to or less than the amount paid by the purchaser for that Bond. A purchaser of that Bond in the initial public offering at the issue price for that Bond who holds it to maturity (or, in the case of a callable Bond, to its earlier call date that results in the lowest yield on that Bond) will realize no gain or loss upon its retirement. Payments of interest on tax-exempt obligations, including the Bonds, are generally subject to IRS Form 1099-INT information reporting requirements. If an owner of a Bond is subject to backup withholding under those requirements, then payments of interest will also be subject to backup withholding. Those requirements do not affect the exclusion of such interest from gross income for federal income tax purposes. Prospective purchasers of the Bonds should consult their own independent tax advisers regarding pending or proposed federal and state tax legislation and court proceedings, and prospective purchasers of the Bonds at other than their original issuance at the respective prices indicated on the inside cover of this Official Statement should also consult their own tax advisers regarding other tax considerations such as the consequences of market discount, as to all of which Bond Counsel expresses no opinion. Bond Counsel’s engagement with respect to the Bonds ends with the issuance of the Bonds, and, unless separately engaged, Bond Counsel is not obligated to defend the City or the owners of the Bonds regarding the tax status of interest thereon in the event of an audit examination by the IRS. The IRS has a program to audit tax- exempt obligations to determine whether the interest thereon is includible in gross income for federal income tax purposes. If the IRS does audit the Bonds, under current IRS procedures, the IRS will treat the City as the taxpayer and the beneficial owners of the Bonds will have only limited rights, if any, to participate in the audit or to obtain and participate in judicial review of such audit. Any action of the IRS, including but not limited to selection of the Bonds for audit, or the course or result of such audit, or an audit of other obligations presenting similar tax issues, may affect the market value of the Bonds. A copy of the proposed form of opinion of Bond Counsel is attached hereto as Appendix B. LEGAL OPINION The legal opinion of Bond Counsel approving the validity of the Bonds, in substantially the form set forth as Appendix B hereto, will be made available to purchasers of the Bonds at the time of original delivery of the Bonds. Certain legal matters will be passed upon for the City and the District by Best Best & Krieger LLP, Indian Wells, California, City Attorney, and for the District by Best Best & Krieger LLP, Riverside, California, Disclosure Counsel, for the Underwriter by Kutak Rock LLP, Irvine, California, and for the Trustee by its counsel. Bond Counsel undertakes no responsibility to the purchasers of the Bonds for the accuracy, completeness or fairness of this Official Statement. ABSENCE OF LITIGATION In connection with the issuance of the Bonds, the City Attorney will deliver an opinion to the effect that, to their actual knowledge, after due inquiry and investigation, there is no action, suit, proceeding or investigation at law or in equity before or by any court, public board or body, pending or threatened, or any unfavorable decision, Page 923 of 1128 66 ruling or finding, against or affecting the District, which would adversely impact the District’s ability to complete the transactions described in, or contemplated by, the Indenture or this Official Statement, restrain or enjoin the collection of the Special Taxes, or in any way contest or affect the validity of the Bonds, the Indenture, the Special Taxes, or the transactions described herein. NO RATING The District has not made, and does not contemplate making, an application to any rating organization for the assignment of a rating on the Bonds. UNDERWRITING The Bonds are being purchased by Piper Sandler & Co. (the “Underwriter”). [The Underwriter has agreed to purchase the Bonds at a price of $_______ (being the $_______ aggregate principal amount of the Bonds, less an Underwriter’s discount of $______ and plus original issue premium of $_______).] The bond purchase agreement relating to the Bonds provides that the Underwriter will purchase all of the Bonds if any are purchased, the obligation to make such purchase being subject to certain terms and conditions set forth in the Bond Purchase Agreement, the approval of certain legal matters by counsel and certain other conditions. The Underwriter’s compensation is contingent upon the successful issuance of the Bonds. Under certain circumstances, the Underwriter may offer and sell the Bonds to certain dealers and others at prices lower or yields higher than those stated on the page immediately following the cover page of this Official Statement. The offering prices may be changed from time to time by the Underwriter. FINANCIAL INTERESTS The fees being paid to the Underwriter and its counsel and the Trustee are contingent upon the issuance and delivery of the Bonds. From time to time Best Best & Krieger LLP represents the Underwriter on matters unrelated to the Bonds. MUNICIPAL ADVISOR The City has retained Del Rio Advisors, LLC, of Modesto, California, as municipal advisor (the “Municipal Advisor”) in connection with the issuance of the Bonds. The Municipal Advisor is not obligated to undertake, and has not undertaken to make, an independent verification or assume responsibility for the accuracy, completeness, or fairness of the information contained in this Official Statement. The Municipal Advisor has assisted the City with the structure, timing and terms for the sale of the Bonds. Del Rio Advisors, LLC, is an independent municipal advisory firm and is not engaged in the business of underwriting, trading or distributing municipal securities or other public securities. MISCELLANEOUS So far as any statements made in this Official Statement involve matters of opinion, assumptions, projections, anticipated events or estimates, whether or not expressly stated, they are set forth as such and not as presentations of fact, and actual results may differ substantially from those set forth therein. Neither this Official Statement nor any statement that may have been made verbally or in writing is to be construed as a contract with the Owners of the Bonds. The summaries of certain provisions of the Bonds, statutes and other documents or agreements referred to in this Official Statement do not purport to be complete, and reference is made to each of them for a complete statement of their provisions. Copies are available for review by making requests to the City. Page 924 of 1128 67 The execution and delivery of this Official Statement by the City Treasurer has been duly authorized by the City Council of the City of Palm Desert acting in its capacity as the legislative body of the District. CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) By: Veronica Chavez, Finance Director Page 925 of 1128 APPENDIX A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX For the City of Palm Desert Community Facilities District No. 2021-1 (University Park), County of Riverside, State of California A Special Tax shall be levied on all Taxable Property within the boundaries of the City of Palm Desert Community Facilities District No. 2021-1 (University Park) (“CFD No. 2021-1”) and collected each Fiscal Year commencing in Fiscal Year 2021-22, in an amount determined by the CFD Administrator through the application of the procedures described below. All of the real property within CFD No. 2021-1, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: “Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable Final Map. An Acre means 43,560 square feet of land. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California. “Administrative Expenses” means the actual or reasonably estimated costs related to the administration of CFD No. 2021-1 including, but not limited to: the costs of preparing and computing the Special Tax (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City, the County or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2021-1, or any designee thereof complying with arbitrage rebate requirements, including without limitation rebate liability costs and periodic rebate calculations; the costs to the City, CFD No. 2021-1, or any designee thereof complying with disclosure or reporting requirements of the City or CFD No. 2021-1, associated with applicable federal and State laws; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs to the City, CFD No. 2021-1, or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2021-1 for any other administrative purposes of CFD No. 2021-1, including but not limited to attorney’s fees and other costs related to commencing and pursuing any foreclosure of delinquent Special Taxes. “Annual Special Tax” means the Special Tax actually levied in any Fiscal Year on any Assessor’s Parcel. “Apartment Property” means an Assessor’s Parcel of Developed Property on which all or any portion of a structure or structures with multiple Apartment Units are located, and such Apartment Units are offered for rent and are not available for sale to individual owners. If Apartment Property is subsequently reclassified as Single Family Property, Special Taxes levied on such reclassified Assessor’s Parcels shall be modified to match those of Single Family Property, provided that the Building Square Footage of such Single Family Property can be determined by the CFD Administrator. Otherwise, the property will continue to be classified as Apartment Property. “Apartment Unit” means one (1) for-rent residential unit on Apartment Property. “Approved Property” means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, Page 926 of 1128 A-69 and (ii) that have not been issued a Building Permit on or prior to the May 1st preceding the Fiscal Year in which the Special Tax is being levied. “Assessor” means the Assessor of the County of Riverside. “Assessor’s Parcel” means a lot or parcel shown on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number. “Assessor’s Parcel Map” means an official map of the Assessor designating parcels by Assessor’s Parcel Number. “Assessor’s Parcel Number” means the number assigned to an Assessor’s Parcel by the County for purposes of identification. “Assigned Special Tax” means the Special Tax of that name described in Section C.1 below. “Backup Special Tax” means the Special Tax of that name described in Section C.2 below. “Bonds” means any bonds or other Debt of CFD No. 2021-1, whether in one or more series, secured by the levy of Special Taxes. “Building Permit” means a building permit for construction of a Residential Unit within CFD No. 2021 - 1 issued by the City. “Building Square Footage” means all of the square footage of usable area within the perimeter of a residential structure or dwelling unit, as applicable, not including any carport, walkway, garage, overhang, or similar area. The determination of Building Square Footage shall be made by reference to the Building Permit(s) issued for such Assessor’s Parcel and/or by reference to appropriate records kept by the City. “Calendar Year” means the period commencing January 1st of any year and ending the following December 31. “CFD Administrator” means an authorized representative of the City, or designee thereof, responsible for determining the Special Tax Requirement, for preparing the Special Tax roll and/or calculating the Backup Special Tax. “CFD No. 2021-1” means the City of Palm Desert Community Facilities District No. 2021-1 (University Park). “City” means the City of Palm Desert, California. “Council” means the City Council of the City acting as the legislative body of CFD No. 2021-1 under the Act. “County” means the County of Riverside, California. “Debt” means any binding obligation to pay or repay a sum of money, including obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts. “Debt Service” means for each Fiscal Year, the total amount of principal and interest payable on any Outstanding Bonds during the Calendar Year commencing on January 1st of such Fiscal Year. Page 927 of 1128 A-70 “Developed Property” means for each Fiscal Year, all Taxable Property, exclusive of Provisional Property, for which a Building Permit was issued prior to May 1st of the previous Fiscal Year. An Assessor’s Parcel classified as Developed Property but for which the Building Permit that caused such Assessor’s Parcel to be classified as Developed Property has been cancelled and/or voided prior to the Fiscal Year for which Special Taxes are being levied shall be reclassified as Approved Property, provided that and only if the levy of the Special Tax less Administrative Expenses after such reclassification shall not be less than 1.1 times the annual Debt Service on all Outstanding Bonds. If Bonds have not been issued, a n Assessor’s Parcel classified as Developed Property for which such a Building Permit has been cancelled and/or voided shall be reclassified as Approved Property. “Exempt Property” means for each Fiscal Year, all Assessor’s Parcels designated as being exempt from Special Taxes pursuant to Section H below. “Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual Lots for which Building Permits may be issued without further subdivision. “Fiscal Year” means the period starting on July 1 and ending the following June 30. “Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Class” means any of the classes listed in Table 1 and Table 2 under Section C.1 below. “Lot” means a parcel created by a Final Map capable of conveyance or rental, separate from adjacent parcels or dwelling units and/or on which one or more Residential Units can be constructed. “Lower Income Households Welfare Exemption Property” means, for each Fiscal Year, an Assessor’s Parcel that is entitled to a welfare exemption under subdivision (g) of Section 214 of the California Revenue and Taxation Code (or any successor statute), as indicated in the County Assessor’s roll finalized as of January 1 of the previous Fiscal Year; provided that such property is not exempt from the Special Tax if debt is outstanding and the property was subject to the Special Tax prior to receiving the exemption, in which case the property shall remain subject to the Special Tax and the Special Tax shall be enforceable against the property. “Maximum Special Tax” means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Sections C.3 and C.4 below, which may be levied in a given Fiscal Year on such Assessor’s Parcel of Taxable Property. “Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit has been issued for the purpose of constructing one or more non-residential units or facilities. “Outstanding Bonds” means all Bonds, which are deemed to be outstanding under the Indenture. “Prepayment Amount” means the amount required to prepay the Special Tax Obligation in full for an Assessor’s Parcel as described in Section F.1 below or in part for an Assessor’s Parcel as described in Section F.2 below. “Property Owner Association Property” means any Assessor’s Parcel within the boundaries of CFD No. 2021-1 owned in fee by a property owner association, including any master or sub- association. “Proportionately” or “Proportionate” means for Developed Property, that the ratio of the actual Special Tax levy to the applicable Assigned Special Tax or Backup Special Tax is equal for all Assessor’s Parcels of Page 928 of 1128 A-71 Developed Property. For Approved Property or Undeveloped Property, “Proportionately” means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Approved Property or Undeveloped Property. “Proportionately” may similarly be applied to other categories of Taxable Property as listed in Section D below. “Provisional Property” means all Assessor’s Parcels of Public Property, Property Owner Association Property, Non-Residential Property or property that would otherwise be classified as Exempt Property pursuant to the provisions of Section H, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property below the required minimum Acreage as set forth in Section H. “Provisional Welfare Property” means all Assessor’s Parcels of Lower Income Households Welfare Exemption Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section H, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property below the required minimum Acreage as set forth in Section H. “Public Property” means any property within the boundaries of CFD No. 2021-1, which is owned by, or irrevocably offered for dedication to the federal government, the State of California, the County, the City or any other public agency; provided however that (i) any property owned by a public agency and leased to a private entity and subject to taxation under Section 53340.1 of the Act and (ii) any property subject to taxation pursuant to Section 53317.3 of the Act shall be taxed and classified in accordance with its use. “Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing one or more Residential Units. “Residential Unit” means each separate residential dwelling unit that comprises an independent facility capable of conveyance or rental, separate from adjacent residential dwelling units. “Single Family Property” means all Assessor’s Parcels of Residential Property not classified as Apartment Property. “Special Tax” means any special tax levied within CFD No. 2021-1 pursuant to the Act and this Rate and Method of Apportionment of Special Tax. “Special Tax Obligation” means the total obligation of an Assessor’s Parcel of Taxable Property to pay the Special Tax for the remaining life of CFD No. 2021-1. “Special Tax Requirement” means that amount required in any Fiscal Year to: (i) pay regularly scheduled Debt Service on all Outstanding Bonds; (ii) pay periodic costs on the Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on the Outstanding Bonds; (iii) pay Ad ministrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; (v) accumulate funds to pay directly for acquisition or construction of facilities, provided that the inclusion of such amount does not cause an increase in the Special Tax to be levied on Approved Property, Undeveloped Property, or Provisional Property, until the date that all Bonds have been issued; and (vi) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year; less (vii) a credit for funds available to reduce the Special Tax levy, as determined by the CFD Administrator pursuant to the Indenture. “State” means the State of California. “Taxable Property” means all of the Assessor’s Parcels within the boundaries of CFD No. 2021-1, which are not exempt from the levy of the Special Tax pursuant to law or Section H below. “Trustee” means the trustee or fiscal agent under the Indenture. Page 929 of 1128 A-72 “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Approved Property or Provisional Property. “Zone 1” means the area within CFD No. 2021-1 depicted as such in Exhibit A hereto. “Zone 2” means the area within CFD No. 2021-1 depicted as such in Exhibit A hereto. “Zone 3” means the area within CFD No. 2021-1 depicted as such in Exhibit A hereto. B. LAND USE CLASSIFICATION Each Fiscal Year, beginning with Fiscal Year 2021-22, each Assessor’s Parcel within CFD No. 2021-1 shall be classified as Taxable Property or Exempt Property. In addition, all Taxable Property shall further be classified as Developed Property, Approved Property, Undeveloped Property, Provisional Welfare Property, or Provisional Property, and all such Taxable Property shall be subject to the levy of Special Taxes in accordance with this Rate and Method of Apportionment of Special Tax determined pursuant to Section C below. Furthermore, each Assessor’s Parcel of Developed Property shall be classified as S ingle Family Property, Apartment Property, or Non-Residential Property. Finally, each Assessor’s Parcel of Single Family Property shall be classified according to its applicable Land Use Class based on its Building Square Footage. Page 930 of 1128 A-73 C. SPECIAL TAX RATES 1. Assigned Special Tax for Developed Property and Provisional Welfare Property The Assigned Special Tax applicable to an Assessor’s Parcel classified as Developed Property or Provisional Welfare Property commencing in Fiscal Year 2021-22 shall be determined pursuant to Tables 1, 2 and 3 below. Table 1 Zone 1 Assigned Special Tax Rates Land Use Class Land Use Type Building Square Footage Assigned Special Tax 1 Single Family Property ≥ 2,500 $2,300 per Residential Unit 2 Single Family Property 2,400 – 2,499 $2,225 per Residential Unit 3 Single Family Property 2,300 – 2,399 $2,175 per Residential Unit 4 Single Family Property 2,200 – 2,299 $2,100 per Residential Unit 5 Single Family Property 2,100 – 2,199 $2,025 per Residential Unit 6 Single Family Property 2,000 – 2,099 $1,925 per Residential Unit 7 Single Family Property 1,900 – 1,999 $1,600 per Residential Unit 8 Single Family Property 1,800 – 1,899 $1,550 per Residential Unit 9 Single Family Property < 1,800 $1,275 per Residential Unit 10 Non-Residential Property NA NA Page 931 of 1128 A-74 Table 2 Zone 2 Assigned Special Tax Rates Land Use Class Land Use Type Building Square Footage Assigned Special Tax 1 Single Family Property ≥ 3,400 $3,025 per Residential Unit 2 Single Family Property 3,200 – 3,399 $2,975 per Residential Unit 3 Single Family Property 3,000 – 3,199 $2,875 per Residential Unit 4 Single Family Property 2,800 – 2,999 $2,800 per Residential Unit 5 Single Family Property 2,600 – 2,799 $2,675 per Residential Unit 6 Single Family Property 2,400 – 2,599 $2,625 per Residential Unit 7 Single Family Property 2,200 – 2,399 $2,600 per Residential Unit 8 Single Family Property 2,000 – 2,199 $2,575 per Residential Unit 9 Single Family Property < 2,000 $2,475 per Residential Unit 10 Non-Residential Property NA NA Page 932 of 1128 A-75 Table 3 Zone 3 Assigned Special Tax Rates Land Use Class Land Use Type Building Square Footage Assigned Special Tax 1 Single Family Property ≥ 2,500 $2,300 per Residential Unit 2 Single Family Property 2,400 – 2,499 $2,225 per Residential Unit 3 Single Family Property 2,300 – 2,399 $2,175 per Residential Unit 4 Single Family Property 2,200 – 2,299 $2,100 per Residential Unit 5 Single Family Property 2,100 – 2,199 $2,025 per Residential Unit 6 Single Family Property 2,000 – 2,099 $1,925 per Residential Unit 7 Single Family Property 1,900 – 1,999 $1,600 per Residential Unit 8 Single Family Property 1,800 – 1,899 $1,550 per Residential Unit 9 Single Family Property < 1,800 $1,275 per Residential Unit 10 Apartment Property NA $750 per Residential Unit 11 Non-Residential Property NA NA Page 933 of 1128 A-76 On each July 1, commencing July 1, 2022, the Assigned Special Tax for Developed Property and Provisional Welfare Property shall be increased by two percent (2%) of the amount in effect in the prior Fiscal Year. 2. Backup Special Tax for Developed Property and Provisional Welfare Property The Backup Special Tax for Developed Property and Provisional Welfare Property commencing in Fiscal Year 2021-22 shall be $15,419 per Acre for Zone 1, $19,322 per Acre for Zone 2 and $22,662 per Acre for Zone 3. Each July 1, commencing July 1, 2022, the Backup Special Tax for Developed Property and Provisional Welfare Property shall be increased by two percent (2%) of the amount in effect in the prior Fiscal Year. For the purpose of calculating the Backup Special Tax, the land area applicable to Apartment Property shall be computed from the Acreage of the Lot on which the Apartment Property is located, with the Acreage for such Lot allocated equally among all of the Apartment Property located or to be located on such Lot. 3. Maximum Special Tax for Developed Property and Provisional Welfare Property The Maximum Special Tax for Developed Property and Provisional Welfare Property shall be the greater of the Assigned Special Tax for Developed Property and Provisional Welfare Property or the Backup Special Tax for Developed Property and Provisional Welfare Property. 4. Maximum Special Tax for Provisional Property, Approved Property and Undeveloped Property The Maximum Special Tax for Provisional Property, Approved Property, and Undeveloped Property commencing in Fiscal Year 2021-22 shall be $15,419 per Acre for Zone 1, $19,322 per Acre for Zone 2 and $22,662 per Acre for Zone 3. Each July 1, commencing July 1, 2022, the Maximum Special Tax for Provisional Property, Approved Property and Undeveloped Property shall be increased by two percent (2%) of the amount in effect in the prior Fiscal Year. D. METHOD OF APPORTIONMENT For each Fiscal Year, commencing Fiscal Year 2021-22, the CFD Administrator shall levy the Special Tax on all Taxable Property in accordance with the following steps: Step 1: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax as needed to satisfy the Special Tax Requirement. Step 2: If additional monies are needed to satisfy the Special Tax Requirement after Step 1 has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Approved Property in an amount up to 100% of the Maximum Special Tax for Approved Property. Step 3: If additional monies are needed to satisfy the Special Tax Requirement after Step 2 has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property in an amount up to 100% of the Maximum Special Tax for Undeveloped Property. Step 4: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax amount determined in Step 1 shall be increased Proportionately on each Assessor’s Parcel of Developed Property in an amount up to 100% of the Maximum Special Tax for Developed Property. Page 934 of 1128 A-77 Step 5: If additional monies are needed to satisfy the Special Tax Requirement after the first four steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Provisional Welfare Property in an amount up to 100% of the Maximum Special Tax for Provisional Property. Step 6: If additional monies are needed to satisfy the Special Tax Requirement after the first four steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Provisional Property in an amount up to 100% of the Maximum Special Tax for Provisional Property. Notwithstanding the above, under no circumstances will the Special Tax levied in any Fiscal Year against any Assessor’s Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased as a result of a delinquency or default in the payment of the Special Tax applicable to any other Assessor’s Parcel within CFD No. 2021-1 by more than ten percent (10%) above what would have been levied in the absence of such delinquencies or defaults. E. COLLECTION OF SPECIAL TAXES Collection of the Special Tax shall be made by the County in the same manner as ordinary ad valorem property taxes are collected and the Special Tax shall be subject to the same penalties and the same lien priority in the case of delinquency as ad valorem taxes; provided, however, that the Council may provide for (i) other means of collecting the Special Tax, including direct billings thereof to the property owners; and (ii) judicial foreclosure of delinquent Special Taxes. F. PREPAYMENT OF SPECIAL TAX OBLIGATION 1. Prepayment in Full Property owners may prepay and permanently satisfy the Special Tax Obligation by a cash settlement with the City as permitted under Government Code Section 53344. The following definitions apply to this Section F: “CFD Public Facilities Costs” means $30,000,000 or such lower number as (i) shall be determined by the CFD Administrator as sufficient to acquire or construct the facilities to be financed under the Act and financing program for CFD No. 2021-1, or (ii) shall be determined by the Council concurrently with a covenant that it will not issue any more Bonds (except refunding bonds). “Construction Fund” means the fund (regardless of its name) established pursuant to the Indenture to hold funds, which are currently available for expenditure to acquire or construct the facilities or pay fees authorized to be funded by CFD No. 2021-1. “Future Facilities Costs” means the CFD Public Facilities Costs minus (i) costs previously paid from the Construction Fund to acquire or construct the facilities, (ii) monies currently on deposit in the Construction Fund, and (iii) monies currently on deposit in an escrow or other designated fund that are expected to be available to finance CFD Public Facilities Costs. “Outstanding Bonds” means all Previously Issued Bonds, which remain outstanding as of the first interest and/or principal payment date following the current Fiscal Year excludi ng Bonds to be redeemed at a later date with proceeds of prior Special Tax prepayments. “Previously Issued Bonds” means all Bonds that have been issued prior to the date of prepayment. The Special Tax Obligation applicable to an Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property, or Provisional Property that has been included in a Final Map may be prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein, provided that a prepayment may be made with respect to a particular Assessor’s Parcel only if there are no Page 935 of 1128 A-78 delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel eligible to prepay the Special Tax Obligation shall provide the CFD Administrator with written notice of intent to prepay and designate or identify the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the Prep ayment Amount for such Assessor’s Parcel within thirty (30) days of the request and may charge a reasonable fee for providing this service. Prepayment must be made at least 60 days prior to any redemption date for the CFD No. 2021 -1 Bonds to be redeemed with the proceeds of such prepaid Special Taxes, unless a shorter period is acceptable to the Trustee and the City. The Prepayment Amount shall be calculated for each applicable Assessor’s Parcel or group of Assessor’s Parcels as follows (capitalized terms are defined below): Bond Redemption Amount plus Redemption Premium plus Future Facilities Costs plus Defeasance Amount plus Administrative Fees and Expenses less Reserve Fund Credit less Capitalized Interest Credit Equals: Prepayment Amount The Prepayment Amount shall be determined as of the proposed prepayment date as follows: 1. Confirm that no Special Tax delinquencies apply to such Parcel. 2. For an Assessor’s Parcel of Developed Property, compute the Maximum Special Tax for the Assessor’s Parcel as though all Assessor’s Parcels of Taxable Property within CFD No. 2021-1 have been built out. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for the Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has not been issued or Provisional Property to be prepaid, compute the Maximum Special Tax for the Assessor’s Parcel. 3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the estimated total amount of Special Taxes that could be levied at build out of all Assessor’s Parcels of Taxable Property based on the applicable Maximum Special Tax for all such Assessor’s Parcels of Taxable Property not including any Parcels for which the Special Tax obligation has been previously prepaid. 4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the Prepayment Amount (the “Bond Redemption Amount”). 5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”). 6. Determine the Future Facilities Costs. 7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to determine the portion of the Future Facilities Costs applicable to the Assessor’s Parcel (the “Future Facilities Amount”). Page 936 of 1128 A-79 8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from Special Tax prepayments. 9. Determine the Special Taxes levied on the Assessor’s Parcel in the current Fiscal Year which have not yet been paid. 10. Determine the amount the CFD Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount. 11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”). 12. Verify the administrative fees and expenses associated with the prepayment, including the cost to in vest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Special Tax obligation for the Assessor’s Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”). 13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. 14. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to paragraph 3 by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the “Capitalized Interest Credit”). 15. The amount to prepay the Special Tax Obligation is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit and the Capitalized Interest Credit. 16. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make Debt Service payments. The Future Facilities Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by the CFD. The Prepayment Amount may be sufficient to redeem an amount other than a $5,000 increment of CFD No. 2021-1 Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to redeem CFD No. 2021-1 Bonds to be used with the next prepayment of CFD No. 2021-1 Bonds. The CFD Administrator will confirm that all previously levied Special Taxes have been paid in full. With respect to any Assessor’s Parcel for which the Special Tax Obligation is prepaid in full, once the CFD Administrator has confirmed that all previously levied Special Taxes have been paid, the Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of the Special Tax and the release of the Special Tax lien on such Assessor’s Parcel, and the obligation of the owner of such Assessor’s Parcel to pay the Special Tax shall cease. Page 937 of 1128 A-80 Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the aggregate amount of Maximum Special Taxes less Administrative Expenses that may be levied on Taxable Property, respectively, after the proposed prepayment is at least 1.1 times the Debt Service on all Outstanding Bonds in each Fiscal Year. 2. Partial Prepayment The Special Tax on an Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property, or Provisional Property that has been included in a Final Map may be partially prepaid. The amount of the prepayment shall be calculated as in Section F.1; except that a partial prepayment shall be calculated according to the following formula: PP = (PE-A) x F+A These terms have the following meaning: PP = the partial prepayment PE = the Prepayment Amount calculated according to Section F.1 F = the percentage by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax Obligation A = the Prepayment Administrative Fees and Expenses from Section F.1 The owner of any Assessor’s Parcel who desires such partial prepayment shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax Obligation, (ii) the perc entage by which the Special Tax Obligation shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax Obligation for an Assessor’s Parcel within sixty (60) days of the request and may charge a reasonable fee for providing this service. With respect to any Assessor’s Parcel that is partially prepaid, the City shall (i) distribute the funds remitted to it according to Section F.1., and (ii) indicate in the records of CFD No. 2021 -1 that there has been a partial prepayment of the Special Tax Obligation and that a portion of the Special Tax with respect to such Assessor’s Parcel, equal to the outstanding percentage (1.00 - F) of the Maximum Special Tax, shall continue to be levied on such Assessor’s Parcel. Notwithstanding the foregoing, no partial prepayment shall be allowed unless the aggregate amount of Maximum Special Taxes less Administrative Expenses that may be levied on Taxable Property, respectively, after the proposed partial prepayment is at least 1.1 times the Debt Service on all Outstanding Bonds in each Fiscal Year. G. TERM OF SPECIAL TAX The Special Tax shall be levied as long as necessary to meet the Special Tax Requirement for a period not to exceed forty-five (45) Fiscal Years commencing with Fiscal Year 2021-22, provided however that the Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined that all required interest and principal payments on CFD No. 2021-1 Bonds have been paid. H. EXEMPTIONS The CFD Administrator shall classify as Exempt Property (i) Assessor’s Parcels of Public Property, (ii) Assessor’s Parcels of Property Owner Association Property, (iii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Lower Income Households Welfare Exemption Property, and (vi) Assessor’s Parcels classified as Non-Residential Property as determined reasonably by the CFD Administrator, provided that no such Page 938 of 1128 A-81 classification would reduce the sum of all Taxable Property in CFD No. 2021-1 to less than 44.86 Acres in Zone 1, 48.84 Acres in Zone 2 or 11.12 Acres in Zone 3. Assessor’s Parcels of Lower Income Households Welfare Exemption Property which cannot be classified as Exempt Property because such classification would reduce the sum of all Taxable Property in CFD No. 2021-1 to less than 44.86 Acres in Zone 1, 48.84 Acres in Zone 2 or 11.12 Acres in Zone 3 shall be classified as Provisional Welfare Property and will continue to be subject to the CFD No. 2021-1 Special Taxes accordingly. Assessor’s Parcels which cannot be classified as Exempt Property because such classification would reduce the sum of all Taxable Property in CFD No. 2021-1 to less than 44.86 Acres in Zone 1, 48.84 Acres in Zone 2 or 11.12 Acres in Zone 3 shall be classified as Provisional Property and will continue to be subject to the CFD No. 2021-1 Special Taxes accordingly. Tax exempt status for the purpose of this paragraph will be assigned by the CFD Administrator in the chronological order in which property becomes eligible for classification as Exempt Property, except for Non -Residential Property, which will be assigned tax exempt status only after all other eligible property types have been classified as Exempt Property. If the use of an Assessor’s Parcel of Exempt Property changes so that such Assessor’s Parcel is no longer classified as one of the uses set forth in the first paragraph of Section H above that would make suc h Assessor’s Parcel eligible to be classified as Exempt Property, such Assessor’s Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property. I. APPEALS AND INTERPRETATIONS Any property owner claiming that the amounts or application of the Special Taxes is not correct may file a written notice of appeal with the CFD Administrator not later than twelve months after having paid the first installment of the Special Taxes that are disputed. The CFD Administrator shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Taxes, and rule on the appeal. If the decision of the CFD Administrator requires that the Special Taxes for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made but an adjustment shall be made to the Special Taxes on that Assessor’s Parcel in the subsequent Fiscal Year(s) to compensate for the overpayment of the Special Taxes. Any landowner who pays the Special Tax and claims the amount of the Special Tax levied on his or her Assessor’s Parcel is in error shall first consult with the CFD Administrator regarding such error not later than thirty-six (36) months after first having paid the first installment of the Special Tax that is disputed. If following such consultation, the CFD Administrator determines that an error has occurred, then the CFD Administrator shall take any of the following actions, in order of priority, in order to correct the error: i. Amend the Special Tax levy on the landowner’s Assessor’s Parcel(s) for the current Fiscal Year prior to the payment date, ii. Require the CFD to reimburse the landowner for the amount of the overpayment to the extent of available CFD funds, or iii. Grant a credit against, eliminate or reduce the future Special Taxes on the landowner’s Assessor’s Parcel(s) in the amount of the overpayment. If following such consultation and action by the CFD Administrator the landowner believes such error still exists, such person may file a written notice of appeal with the Council. Upon the receipt of such notice, the Council or designee may establish such procedures as deemed necessary to undertake the review of any such appeal. If the Council or designee determines an error still exists, the CFD Administrator shall take any of the actions described as (i), (ii) and (iii) above, in order of priority, in order to correct the error. The Council or designee thereof shall interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguities and make determinations relative to the administration of the Special Tax and any landowner appeals. The decision of the Council or designee shall be final. Page 939 of 1128 Exhibit A Zone Descriptions Page 940 of 1128 A-83 Page 941 of 1128 A-84 Page 942 of 1128 A-85 Page 943 of 1128 A-86 Page 944 of 1128 A-87 Page 945 of 1128 A-88 Page 946 of 1128 A-89 Page 947 of 1128 A-90 Page 948 of 1128 A-91 Page 949 of 1128 A-92 Page 950 of 1128 A-93 Page 951 of 1128 A-94 Page 952 of 1128 A-95 Page 953 of 1128 A-96 Page 954 of 1128 A-97 Page 955 of 1128 A-98 Page 956 of 1128 A-99 Page 957 of 1128 A-100 Page 958 of 1128 A-101 Page 959 of 1128 A-102 Page 960 of 1128 A-103 Page 961 of 1128 A-104 Page 962 of 1128 A-105 Page 963 of 1128 Page 964 of 1128 APPENDIX B FORM OF OPINION OF BOND COUNSEL Upon issuance of the Bonds, Richards, Watson & Gershon, A Professional Corporation, Bond Counsel, proposes to render its final approving opinion in substantially the following form: [Closing Date] Page 965 of 1128 APPENDIX C APPRAISAL REPORT Page 966 of 1128 APPENDIX D SUMMARY OF THE INDENTURE The following is a summary of certain provisions of the Indenture which are not described elsewhere. This summary does not purport to be comprehensive and reference should be made to the Indenture for a full and complete statement of the provisions thereof. Page 967 of 1128 APPENDIX E FORMS OF DISTRICT CONTINUING DISCLOSURE AGREEMENT AND DEVELOPER CONTINUING DISCLOSURE CERTIFICATE THIS CONTINUING DISCLOSURE AGREEMENT dated as of ______, 2024 (the “Disclosure Agreement”) is executed and delivered by and between the City of Palm Desert Community Facilities District No. 2021-1 (University Park) (the “District”) and Willdan Financial Services as Dissemination Agent in connection with the issuance of [$__________] City of Palm Desert Community Facilities District No. 2021-1 (University Park) Special Tax Bonds, Series 2024 (the “Bonds”). The Bonds are issued pursuant to a Bond Indenture, dated as of July 1, 2021 (the “Original Indenture”) as supplemented by the First Supplemental Indenture, dated [March 1, 2024] (the “First Supplemental Indenture” together with the “Original Indenture” referred to as the “Indenture”), between the City and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”). The District covenants and agrees as follows: SECTION 1. Purpose of the Disclosure Agreement. This Disclosure Agreement is being executed and delivered by the District for the benefit of the Owners and Beneficial Owners of the Bonds and in order to assist the Participating Underwriter in complying with the Rule (defined below). SECTION 2. Definitions. In addition to the definitions set forth in the Indenture, which apply to any capitalized term used in this Disclosure Agreement unless otherwise defi ned in this Section, the following capitalized terms shall have the following meanings: “Annual Report” shall mean any Annual Report provided by the District pursuant to, and as described in, Sections 3 and 4 of this Disclosure Agreement. “Beneficial Owner” shall mean any person, which has or shares the power, directly or indirectly, to make investment decisions concerning ownership of any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries). “City” means the City of Palm Desert, County of Riverside, California. “Disclosure Representative” shall mean the City Manager, Director of Finance of the City or the designee of any one of such officers, or such other officer or employee as the City Manager shall designate in writing from time to time. “Dissemination Agent” shall mean the Willdan Financial Services, or any successor Dissemination Agent designated in writing by the District and which has filed with the District a written acceptance of such designation. “EMMA” shall mean the Electronic Municipal Market Access system of the MSRB. “Financial Obligation” means a (i) debt obligation; (ii) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned deb t obligation; or (iii) guarantee of (i) or (ii). The term Financial Obligation shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule. “Listed Events” shall mean any of the events listed in Section 5 of this Disclosure Agreement and any other event legally required to be reported pursuant to the Rule. “MSRB” shall mean the Municipal Securities Rulemaking Board and any successor entity designated under the Rule as the repository for filings made pursuant to the Rule. “Official Statement” means the Official Statement, dated [__________, 2024], relating to the Bonds. Page 968 of 1128 E-111 “Participating Underwriter” shall mean Piper Sandler & Co. “Repository” shall mean the MSRB or any other entity designated or authorized by the Securities and Exchange Commission to receive reports pursuant to the Rule. Unless otherwise designated by the MSRB or the Securities and Exchange Commission, filings with the MSRB are to be made through the EMMA website of th e MSRB, currently located at http://emma.msrb.org. “Rule” shall mean Rule 15c2-12 adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. “State” shall mean the State of California. SECTION 3. Provision of Annual Reports. (a) The District shall, or shall cause the Dissemination Agent to, not later than April 1 of each year, commencing April 1, 2024, provide to the Repository an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Agreement. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross-reference other information as provided in Section 4 of this Disclosure Agreement; provided that the audited financial statements of the District, if any are prepared, may be submitted separately from the balance of the Annual Report and later than the date required above for the filing of the Annual Report if they are not available by that date. If the District’s fiscal year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 5. The District shall provide a written certification with each Annual Report furnished to the Dissemination Agent to the effect that such Annual Report constitutes the Annual Report required to be furnished by it hereunder. The Dissemination Agent may conclusively rely upon such certification of the District and shall have no duty or obligation to review such Annual Report. (b) Not later than five (5) days prior to the date for the filing of an Annual Report, the District shall provide the Annual Report to the Dissemination Agent (if other than the District). If by five (5) days prior to such date, the Dissemination Agent has not received a copy of the Annual Report, the Dissemination Agent shall contact the District to inquire if the District is in compliance with subsection (a). (c) If the District is unable to provide to the Repository an Annual Report by the date required in subsection (a), the Dissemination Agent, in a timely manner, shall send a notice to the Repository in the form required by the Repository stating that the Annual Report has not been filed and, if provided by the District, the date the District anticipates the filing to be made. (d) The Dissemination Agent shall: (i) determine each year prior to date for providing the Annual Report the name and address of the Repository if other than the MSRB; and (ii) file a report with the District certifying that the Annual Report has been provided to the Repository pursuant to this Disclosure Agreement and stating the date it was provided to the Repository. SECTION 4. Content of Annual Reports. The District’s Annual Report shall contain or include by reference the following: (a) Financial Statements. The audited financial statements of the District for the prior fiscal year, if any have been prepared and which, if prepared, shall be prepared in accordance with generally accepted accounting principles as promulgated to apply to governmental entities from time to time by the Governmental Accounting Standards Board; provided, however, that the District may, from time to time, if required by federal or state legal requirements, modify the basis upon which its financial statements are prepared. In the event that the District shall modify the basis upon which its financial statements are prepared, the District shall provide the information referenced in Section 8(b) below regarding such modification. If the District is prepari ng audited Page 969 of 1128 E-112 financial statements and such audited financial statements are not available by the time the Annual Report is required to be filed pursuant to Section 3(a), the Annual Report shall contain unaudited financial statements, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available. (b) Financial and Operating Data. To the extent not included in the audited financial statements of the District, the Annual Report shall also include the following additional items: (i) principal amount of Bonds outstanding as of the September 2 preceding the filing of the Annual Report; (ii) the balance in each fund under the Indenture and the Reserve Requirement as of the September 2 preceding the filing of the Annual Report; (iii) an update of Table 3 and Table 4 in the Official Statement based on the most recent Special Tax levy preceding the date of the Annual Report and on the assessed values of property for the current Fiscal Year; (iv) a statement regarding the amount of Special Tax prepayments, if any, in the Fiscal Year for which the Annual Report is prepared; (v) the status of any foreclosure actions being pursued by the District with respect to delinquent Special Taxes; (vi) a table showing the total Special Taxes levied and the total Special Taxes collected for the prior fiscal year and the total Special Taxes that, as of December 31, remain unpaid for each prior fiscal year in which Special Taxes were levied and the number of delinquent parcels in the District; (vii) a list of the property owners within the District responsible for 5% or more of the Special Tax levy for the current Fiscal Year, if any, the percentage of the Special Tax levy for which each such property owner is responsible, and whether any of such owners, as of December 31 preceding the Annual Report, was delinquent in the payment of Special Taxes; (viii) with respect to the Special Tax levy for the Fiscal Year beginning on the July 1 immediately preceding the April 1 due date by which the Annual Report is required to be filed with EMMA, a statement of the percentage of the annual Special Tax levy for which Developed Property is responsible; and (ix) any information not already included under 1 through 8 above that the District is required to file in its annual report pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, as amended, with the California Debt and Investment Advisory Commission. Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the District or related public entities, which have been submitted to each of EMMA or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the MSRB. The District shall clearly identify each such other document so included by reference. In the event that the District shall modify the basis upon which its financial statements are prepared, the Dissemination Agent shall provide a notice of such modification to the Repository, including the information set forth in Section 8(b) below. Page 970 of 1128 E-113 SECTION 5. Reporting of Significant Events. (a) The District shall give, or cause to be given, notice of the occurrence of any of the following Listed Events with respect to the Bonds: (i) Principal and interest payment delinquencies. (ii) Non-payment related defaults, if material. (iii) Unscheduled draws on debt service reserves reflecting financial difficulties. (iv) Unscheduled draws on credit enhancements reflecting financial difficulties. (v) Substitution of credit or liquidity providers, or their failure to perform. (vi) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security. (vii) Modifications to rights of security holders, if material. (viii) Bond calls, if material, and tender offers. (ix) Defeasances. (x) Release, substitution, or sale of property securing repayment of the securities, if material. (xi) Rating changes. (xii) Bankruptcy, insolvency, receivership or similar event of the City or other obligated person. (xiii) The consummation of a merger, consolidation, or acquisition involving the City or an obligated person, or the sale of all or substantially all of the assets of the City or an obligated person (other than in the ordinary course of business), the entry into a definitive agreement to undertake such an action, or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material. (xiv) Appointment of a successor or additional fiscal agent or the change of name of the fiscal agent, if material. (xv) Incurrence of a financial obligation of the City, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the City, any of which affect security holders, if material (for the definition of “financial obligation,” see clause (e)). (xvi) Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a financial obligation of the City, any of which reflect financial difficulties (for the definition of “financial obligation,” see clause (e)). (b) Whenever the District obtains knowledge of the occurrence of a Listed Event, the District shall, or shall cause the Dissemination Agent to, file a notice of such occurrence with the MSRB, in an electronic format as prescribed by the MSRB, in a timely manner not in excess of 10 business days after the occurrence of the Listed Event. Notwithstanding the foregoing, notice of a Listed Event described in subsection (a)(viii) above need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to holders of affected Bonds under the Trustee Agreement. Page 971 of 1128 E-114 (c) The District acknowledges that the events described in subparagraphs (a)(ii), (a)(vii), (a)(viii) (if the event is a bond call), (a)(x), (a)(xiii), (a)(xiv) and (a)(xv) of this Section 5 contain the qualifier “if material” and that subparagraph (a)(xi) also contains the qualifier “material” with respect to certain notices, determinations or other events affecting the tax status of the Bonds. The District shall cause a notice to be filed as set forth in paragraph (b) above with respect to any such event only to the extent that it determines the event’s occurrence is material for purposes of U.S. federal securities law. Whenever the District obtains knowledge of the occurrence of any of these Listed Events, the District will as soon as possible determine if such event would be material under applicable federal securities law. If such event is determined to be material, the City District cause a notice to be filed as set forth in paragraph (b) above. The Dissemination Agent shall not be responsible for determining whether an event is material. (d) For purposes of this Disclosure Certificate, any event described in paragraph (a)(xii) above is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City. (e) For purposes of Section 5(a)(xv) and (xvi), “financial obligation” means a (i) debt obligation; (ii) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii). The term financial obligation shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule. SECTION 6. Termination of Reporting Obligation. The obligations of the District under this Disclosure Agreement shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. SECTION 7. Dissemination Agent. The District may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Agreement, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. The Dissemination Agent may resign by providing thirty days written notice to the District and the Trustee. The Dissemination Agent shall not be responsible for the content of any report or notice prepared by the District and shall have no duty to review any information provided to it by the District. The Dissemination Agent shall have no duty to prepare any information report nor shall the Dissemination Agent be responsible for filing any report not provided to it by the District in a timely manner and in a form suitable for filing. SECTION 8. Amendment; Waiver. (a) Notwithstanding any other provision of this Disclosure Agreement, the District may amend this Disclosure Agreement, and any provision of this Disclosure Agreement may be waived, provided that the following conditions are satisfied: (1) If the amendment or waiver related to the provisions of Sections 3(a), 4, or 5, it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature or status of an obligated person with respect to the Bonds, or the type of business conducted; (2) The undertaking hereunder, as amended or taking into account such waiver, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the original execution and delivery of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and Page 972 of 1128 E-115 (3) The amendment or waiver either (i) is approved by the Owners of the Bonds in the same manner as provided in the Indenture for amendments to the Indenture with the consent of Owners, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the Owners or Beneficial Owners of the Bonds. (b) In the event of any amendment or waiver of a provision of this Disclosure Agreement, the District shall describe such amendment in the next Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or, in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the District. In addition, if the amendment is related to the accounting principles to be followed in preparing financial statements, (i) notice of such change shall be given in the same manner as for a Listed Event under Section 5(a), and (ii) the Annual Report for the year in which the change is made should present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. SECTION 9. Format of Filings with Repository. Any report or filing with the Repository pursuant to this Disclosure Agreement must be submitted in electronic format, accompanied by such identifying information as is prescribed by the Repository. SECTION 10. Additional Information. Nothing in this Disclosure Agreement shall be deemed to prevent the District from disseminating any other information, using the means of dissemination set forth in this Disclosure Agreement or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Agreement. If the District chooses to include any information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is specifically required by this Disclosure Agreement, the District shall have no obligation under this Disclosure Agreement to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event. SECTION 11. Default. In the event of a failure of the District to comply with any provision of this Disclosure Agreement, any Owner or Beneficial Owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the District to comply with its obligations under this Disclosure Agreement. A default under this Disclosure Agreement shall not be deemed an Event of Default under the Indenture, and the sole remedy under this Disclosure Agreement in the event of any failure of the District to comply with this Disclosure Agreement shall be an action to compel performance and the District shall have no monetary liability to any person as a result of any failure to comply with the terms of this Disclosure Agreement. SECTION 12. Duties, Immunities and Liabilities of Dissemination Agent. The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Agreement, and the District agrees, to the extent permitted by law, to indemnify and save the Dissemination Agent, its officers, directors, employees and agents, harmless against any loss, expense and liabilities which it may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorney’s fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent’s negligence or willful misconduct. The Dissemination Agent shall be paid compensation by the District for its services provided hereunder in accordance with its schedule of fees as amended from time to time and all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder. In performing its duties hereunder, the Dissemination Agent shall not be deemed to be acting in any fiduciary capacity for the District, the Owners, or any other party. The obligations of the District under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds. SECTION 13. Notices. Any notices or communications to or among any of the parties to this Disclosure Agreement may be given as follows: Page 973 of 1128 E-116 To the District: City of Palm Desert Community Facilities District No. 2021-1 (University Park) 73510 Fred Waring Drive Palm Desert, CA 992260 Attention: Director of Finance To the Dissemination Agent: Willdan Financial Services 27368 Via Industria #200 Temecula, CA 92590 SECTION 14. Beneficiaries. This Disclosure Agreement shall inure solely to the benefit of the District, the Dissemination Agent, the Participating Underwriter and Owners and Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity. SECTION 15. Counterparts. This Disclosure Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. IN WITNESS WHEREOF, the parties hereto have executed this Disclosure Agreement as of the date first above written. CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) By: Karina Quintanilla, Mayor WILLDAN FINANCIAL SERVICES, as Dissemination Agent By: Authorized Officer Page 974 of 1128 E-117 EXHIBIT A FORM OF NOTICE TO THE MUNICIPAL SECURITIES RULEMAKING BOARD OF FAILURE TO FILE ANNUAL REPORT Name of Issuer: City of Palm Desert Community Facilities District No. 2021-1 (University Park) Name of Bond Issue: $________ City of Palm Desert Community Facilities District No. 2021-1 (University Park) Special Tax Bonds, Series 2024 Date of Issuance: _____, 2024 NOTICE IS HEREBY GIVEN that the City of Palm Desert Community Facilities District No. 2021-1 (University Park) (the “District”) has not provided an Annual Report with respect to the above -named Bonds as required by Section 3 of the Disclosure Agreement of the District, dated the Date of Issuance. The District anticipates that the Annual Report will be filed by ______________________. Dated: ________________ WILLDAN FINANCIAL SERVICES, as Dissemination Agent By: Authorized Officer Page 975 of 1128 FORM OF DEVELOPER CONTINUING DISCLOSURE CERTIFICATE – UPI $_________ CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) SPECIAL TAX BONDS, SERIES 2024 This Continuing Disclosure Certificate (University Park Investor, LLC) (the “Disclosure Certificate”) is executed and delivered by the undersigned (the “Property Owner”) and DPFG, LLC as dissemination agent (the “Dissemination Agent”) in connection with the issuance of the bonds captioned above (the “Bonds”) by the City of Palm Desert Community Facilities District No. 2021-1 (University Park) (the “District”). The Bonds (defined below) are being issued pursuant to a resolution adopted by the City Council of the City, acting as legislative body of the District on [__________, 2024], and a Bond Indenture, dated as of July 1, 2021 (the “Original Indenture”) as supplemented by the First Supplemental Indenture, dated [March 1, 2024] (the “First Supplemental Indenture” together with the “Original Indenture” referred to as the “Indenture”), by and between the District and U.S. Bank Trust Company, National Association, as Trustee (the “Trustee”). The Property Owner covenants and agrees as follows: Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the Property Owner for the benefit of the holders and beneficial owners of the Bonds. Section 2. Definitions. In addition to the definitions set forth above and in the Indenture, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: “Affiliate” means any person presently directly (or indirectly through one or more intermediaries) currently under managerial control of the Property Owner, and about whom information could be material to potential investors in their investment decision regarding the Bonds (including without limitation information relevant to the proposed development of the Property or the Property Owner’s ability to pay the Special Taxes related to the Property prior to delinquency). “Assumption Agreement” means an undertaking of an Obligated Owner, or an Affiliate thereof, for the benefit of the holders and beneficial owners of the Bonds containing terms substantially similar to this Disclosure Certificate (as modified for such Obligated Owner’s development and financing plans with respect to the Property), whereby such Obligated Owner or Affiliate agrees to provide Periodic Reports and notices of significant events, setting forth the information described in sections 4 and 5 hereof, respectively, with respect to the porti on of the Property owned by such Obligated Owner and its Affiliates and, at the option of the Property Owner or such Obligated Owner, agrees to indemnify the Dissemination Agent (if any) pursuant to a provision substantially in the form of Section 11 hereof. “Dissemination Agent” means the DPFG, LLC, or any successor Dissemination Agent designated in writing by the Property Owner, and which has filed with the Property Owner, the District and the Trustee a written acceptance of such designation, and which is experienced in providing dissemination agent services such as those required under this Disclosure Certificate. “District” means City of Palm Desert Community Facilities District No. 2021-1 (University Park). “Listed Events” means any of the events listed in Section 5(a) of this Disclosure Certificate. “MSRB” means the Municipal Securities Rulemaking Board, which has been designated by the Securities and Exchange Commission as the sole repository of disclosure information for purposes of the Rule, or any other Page 976 of 1128 E-119 repository of disclosure information that may be designated by the Securities and Exchange Commission as such for purposes of the Rule in the future. “Obligated Owner” means, as of any Report Date, an owner of all or a portion of the Property that represents more than 20% of the aggregate special tax obligation in the Planned Development. “Official Statement” means the final official statement executed by the District in connection with the issuance of the Bonds. “Participating Underwriter” means Piper Sandler & Co., the original Underwriter of the Bonds. “Periodic Report” means any Periodic Report provided by the Property Owner pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. “Person” means an individual, a corporation, a partnership, a limited liability company, an association, a joint stock company, a trust, any unincorporated organization or a government or political subdivision thereof. “Planned Development” means the development plan for the Property described in the Official Statement under “PROPERTY OWNERSHIP AND THE DEVELOPMENT” as such information has been updated, if any, in a prior Periodic Report. “Property” means the property owned by the Property Owners or an Affiliate in the District and subject to the Special Taxes as of the date of determination and (ii) the property in the District that the Property Owners or an Affiliate sold to a Obligated Owner who has not assumed the undertakings of this Disclosure Certificate under Section 6(b) that is owned by such Obligated Owner as of the date of determination. “Report Date” means April 1 of any fiscal year. “Rule” means Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. “Special Taxes” means the special taxes of the District levied on taxable property within the District. Section 3. Provision of Periodic Reports. (a) The Property Owner shall, or, upon written direction of the Property Owner the Dissemi nation Agent shall, not later than the Report Date, commencing April 1, 2024, file with the MSRB a Periodic Report which is consistent with the requirements of Section 4 of this Disclosure Certificate. Not later than 15 calendar days prior to the Report Date, the Property Owner shall provide the Periodic Report to the Dissemination Agent (if different from the Property Owner). The Property Owner shall provide a written certification with (or included as a part of) each Periodic Report furnished to the Dissemination Agent (if different from the Property Owner) to the effect that such Periodic Report constitutes the Periodic Report required to be furnished by it under this Disclosure Certificate. The Dissemination Agent may conclusively rely upon such certific ation of the Property Owner and shall have no duty or obligation to review the Periodic Report. The Periodic Report may be submitted as a single document or as separate documents comprising a package, and may incorporate by reference other information as provided in Section 4 of this Disclosure Certificate. (b) If the Dissemination Agent does not receive a Periodic Report by 15 calendar days prior to the Report Date, the Dissemination Agent shall send a reminder notice to the Property Owner that the Periodic Report has not been provided as required under Section 3(a) above. The reminder notice shall instruct the Property Owner to determine whether its obligations under this Disclosure Certificate have terminated (pursuant to Section 6 below) and, if so, to provide the Dissemination Agent with a notice of such termination in the same manner as for a Listed Event (pursuant to Section 5 below). If the Property Owner does not provide, or cause the Dissemination Agent to provide, a Periodic Report to the MSRB by the Report Date as required in subsection (a) above, the Page 977 of 1128 E-120 Dissemination Agent shall, in a timely manner, send a notice to the MSRB in substantially the form attached hereto as Exhibit A, with a copy to the Trustee (if other than the Dissemination Agent), the District, the Participating Underwriter and the Property Owner. (c) With respect to the Periodic Report, the Dissemination Agent shall, to the extent the Periodic Report has been furnished to it, file the Periodic Report with the MSRB and file a report with the Property Owner (if the Dissemination Agent is other than the Property Owner), the District and the Participating Underwriter certifying that the Periodic Report has been provided pursuant to this Disclosure Certificate, stating the date it was provided to and filed with the MSRB. Section 4. Content of Periodic Reports. The Property Owner’s Periodic Report shall contain or incorporate by reference the information set forth in Exhibit B, any or all of which may be included by specific reference to other documents, including official statements of debt issues of the Property Owner or related public entities, which have been submitted to the MSRB or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the MSRB. The Property Owner shall clearly identify each such other document so included by reference. In addition to any of the information expressly required to be provided in Exhibit B, the Property Owner’s Periodic Report shall include such further information, if any, as may be necessary to make the specifically required statements, in the light of the circumstances under which they are made, not misleading. Section 5. Reporting of Significant Events. (a) The Property Owner shall give, or cause to be given, notice of the occurrence of any of the following Listed Events with respect to itself or the Property, if material: (i) bankruptcy or insolvency proceedings commenced by or against the Property Owner and, if known, any bankruptcy or insolvency proceedings commenced by or against any Affiliate of the Property Owner which is reasonably likely to have a significant impact on the Property Owner’s ability to pay Special Taxes or to sell or develop the Property; (ii) failure to pay any taxes, special taxes (including the Special Taxes) or assessments due with respect to the Property on or prior to the delinquency date to the extent that such failure is not promptly cured by the Property Owner upon discovery thereof; (iii) filing of a lawsuit of which the Property Owner is aware against the Property Owner or an Affiliate of the Property Owner seeking damages, which is reasonably likely to have a significant impact on the Property Owner’s ability to pay Special Taxes or to sell or develop the Property; (iv) material damage to or destruction of any of the improvements on the Property; and (v) any payment default or other material default by the Property Owner on any loan with respect to the construction of improvements on the Property. (b) Whenever the Property Owner obtains knowledge of the occurrence of a Listed Event, the Property Owner shall as soon as possible determine if such event would be material under applicable Federal securities law. (c) If the Property Owner determines that knowledge of the occurrence of a Listed Event would be material under applicable Federal securities law, the Property Owner shall, or shall cause the Dissemination Agent to, promptly file a notice of such occurrence with the MSRB, with a copy to the Trustee, the District and the Participating Underwriter. Page 978 of 1128 E-121 Section 6. Duration of Reporting Obligation. (a) All of the Property Owner’s obligations hereunder shall commence on the date hereof and shall terminate (except as provided in Section 11) on the earliest to occur of the following: (i) upon the legal defeasance, prior redemption or payment in full of all the Bonds, or (ii) if on any date Property Owner is responsible for less than twenty percent (20%) of the aggregate special tax obligation of the property within the District, or (iii) the date on which the Property Owner prepays in full all of the Special Taxes attributable to 50% or more of the Property. The Property Owner shall give notice of the termination of its obligations under this Disclosure Certificate in the same manner as for a Listed Event under Section 5. Nothing herein shall require any person (including, without limitation, the District and the Participating Underwriter) to confirm the satisfaction of any condition for termination of the Property Owner’s obligations hereunder pursuant to this Section 6. (b) If a portion of the Property owned by the Property Owner, or any Affiliate of the Property Owner, is conveyed to a Person that, upon such conveyance, will be an Obligated Owner, the obligations of the Property Owner hereunder with respect to the property in the District owned by such Obligated Owner and its Affiliates may be assumed by such Obligated Owner or by an Affiliate thereof, and the Property Owner’s obligations hereunder with respect to such property will be terminated. In order to effect such assumption, such Obligated Owner or Affiliate shall enter into an Assumption Agreement in form and substance reasonably satisfactory to the District and the Participating Underwriter. Section 7. Dissemination Agent. The Property Owner may, from time to time, appoint or engage a Dissemination Agent to assist the Property Owner in carrying out its obligations under this Disclosure Certificate, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. The initial Dissemination Agent shall be DPFG, LLC. The Dissemination Agent may resign by providing thirty days’ written notice to the District, the Property Owner and the Trustee. Section 8. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the Property Owner may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied (provided, however, that the Dissemination Agent shall not be obligated under any such amendment that modifies or increases its duties or obligations hereunder without its written consent thereto): (a) if the amendment or waiver relates to the provisions of sections 3(a), 4 or 5(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature, or status of an obligated person with respect to t he Bonds, or type of business conducted; and (b) the proposed amendment or waiver either (i) is approved by holders of the Bonds in the manner provided in the Indenture with the consent of holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the holders or beneficial owners of the Bonds. Section 9. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the Property Owner from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Periodic Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the Property Owner chooses to include any information in any Periodic Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the Property Owner Page 979 of 1128 E-122 shall have no obligation under this Disclosure Certificate to update such information or include it in any future Periodic Report or notice of occurrence of a Listed Event. Section 10. Default. In the event of a failure of the Property Owner to comply with any provision of this Disclosure Certificate, the Trustee shall (upon written direction and only to the extent indemnified to its satisfaction from any liability, cost or expense, including fees and expenses of its attorneys), and the Participating Underwriter and any holder or beneficial owner of the Bonds may, take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Property Owner to comply with its obligations under this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an Event of Default under the Indenture, and the sole and exclusive remedy under this Disclosure Certificate in the event of any failure of the Property Owner to comply with this Disclosure Certificate shall be an action to compel performance. Section 11. Duties, Immunities and Liabilities of Dissemination Agent. The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the Property Owner agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents (each, an “Indemnified Party”), harmless against any loss, expense and liability which it may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the reasonable costs and expenses (including attorneys’ fees) of defending against any claim of liability, but excluding losses, liabilities, costs and expenses due to an Indemnified Party’s negligence or willful misconduct or failure to perform its duties hereunder. The Dissemination Agent shall be paid compensation for its services provided hereunder from the Administrative Expense Fund established under the Indenture in accordance with the Dissemination Agent’s schedule of fees as amended from time to time, which schedule, as amended, shall be reasonably acceptable, and all reasonable expenses, reasonable legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder. The Dissemination Agent shall have no duty or obligation to review any information provided to it hereunder and shall not be deemed to be acting in any fiduciary capacity for the District, the Property Owner, the Trustee, the Bond owners, or any other party. The obligations of the Property Owner under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds. Section 12. Notices. Any notice or communications to be among any of the parties to this Disclosure Certificate may be given as follows: To the Issuer: City of Palm Desert Community Facilities District No. 2021-1(University Park) 73510 Fred Waring Drive Palm Desert, California 92260 Attention: Director of Finance To the Trustee: U.S. Bank Trust Company, National Association 633 West 5th Street, 24th Floor Los Angeles, California 90071 Attn: Global Corporate Trust Services LM-CA-T24T To the Participating Underwriter: Piper Sandler & Co. 2321 Rosecrans Ave., Suite 3200 El Segundo, California 90245 Attention: Public Finance Page 980 of 1128 E-123 To the Dissemination Agent: DPFG, LLC 26840 Aliso Viejo Pkwy, Suite 110 Aliso Viejo, California 92656 Attention: Compliance Group To the Property Owner: University Park Investor, LLC 801 San Ramon Valley Blvd., Suite F Danville, California 94526 Attention: Ravi Nandwana provided, however, that all such notices, requests or communication may be made by telephone and promptly confirmed by writing. Any person may, by notice given as aforesaid to the other persons listed abo ve, designate a different address or telephone number(s) to which subsequent notices or communications should be sent. Section 13. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the District, the Property Owner (its successors and assigns), the Trustee, the Dissemination Agent, the Participating Underwriter and holders and beneficial owners from time to time of the Bonds, and shall create no rights in any other person or entity. All obligations of the Property Owner hereunder shall be assumed by any legal successor to the obligations of the Property Owner as a result of a sale, merger, consolidation or other reorganization. Page 981 of 1128 E-124 Section 14. Counterparts. This Disclosure Certificate may be executed in several counterparts, each of which shall be regarded as an original, and all of which shall constitute one and the same instrument. Date: ______, 2024 UNIVERSITY PARK INVESTOR, LLC By: ______________________________________________ Name: ___________________________________________ Title: ____________________________________________ ACCEPTED AND AGREED TO: DPFG, LLC as Dissemination Agent By: Authorized Signatory Page 982 of 1128 EXHIBIT A NOTICE OF FAILURE TO FILE PERIODIC REPORT Name of Issuer: City of Palm Desert Community Facilities District No. 2021-1 (University Park) Name of Bond Issue: City of Palm Desert Community Facilities District No. 2021-1 (University Park) Special Tax Bonds, Series 2024 Date of Issuance: ________, 2024 NOTICE IS HEREBY GIVEN that University Park Investor, LLC (the “Obligated Owner”) has not provided a Periodic Report with respect to the above-named bonds as required by that certain Continuing Disclosure Certificate, dated _______, 2024. The Obligated Owner anticipates that the Periodic Report will be filed by _________________. Dated: DPFG, LLC By: Its: cc: Trustee District Participating Underwriter Property Owner/Obligated Owner Page 983 of 1128 EXHIBIT B PERIODIC REPORT $_______ CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) SPECIAL TAX BONDS, SERIES 2024 This Periodic Report is hereby submitted under Section 4 of the Continuing Disclosure Certificate (the “Disclosure Certificate”) dated ________, 2024, executed by the undersigned (the “Property Owner”) in connection with the issuance of the above-captioned bonds by City of Palm Desert Community Facilities District No. 2021-1 (University Park) (the “District”). Capitalized terms used in this Periodic Report but not otherwise defined have the meanings given to them in the Disclosure Certificate. I. Property Ownership and Development The information in this section is provided as of ____________________ (this date must be not more than 30 days before the date of this Periodic Report). A. Property currently owned by the Property Owner (the “Property”) in the District (the “District”): Development name: Number of lots (acreage): B. Status of land development, intract improvements, or construction activities with respect to the Property: C. Status of building permits and any significant amendments or material changes to the description of land use or development entitlements for the Property described in the Official Statement or the Periodic Report last filed in accordance with the Disclosure Certificate: D. Status of Special Tax payments on all parcels of Property owned by the Property Owner or its Affiliates: Page 984 of 1128 E-127 E. Aggregate property in the District sold (closed escrows) by the Property Owner to end users: Since the Date of Issuance of the Bonds Since the Last Periodic Report Acres For-sale homes Acres For-sale homes For bulk land sales only (excluding sales of finished lots or completed buildings). F. Status of any land purchase contracts with other merchant builders or owners other than end users, with regard to the Property. G. Updates, if any, to tables in “PROPERTY OWNERSHIP AND THE DEVELOPMENT” in the Official Statement. II. Legal and Financial Status of Property Owner Unless such information has previously been included or incorporated by reference in a Periodic Report, describe any change in the legal structure of the Property Owner or its Affiliates or the financial condition and financing plan of the Property Owner or its Affiliates that would materially and adversely interfere with its ability to complete its development plan described in the Official Statement. III. Change in Development or Financing Plans Unless such information has previously been included or incorporated by reference in a Periodic Report, and other than as provided in Section I, describe any development plans or financing plans relating to the Property that are materially different from the proposed development and financing plan described in the Official Statement. IV. Other Material Information In addition to any of the information expressly required above, provide such further information, if any, as may be necessary to make the specifically required statements, in the light of the ci rcumstances under which they are made, not misleading. Page 985 of 1128 E-128 Certification The undersigned Property Owner hereby certifies that this Periodic Report constitutes the Periodic Report required to be furnished by the Property Owner under the Disclosure Certificate. ANY STATEMENTS REGARDING THE PROPERTY OWNER, THE DEVELOPMENT OF THE PROPERTY, THE PROPERTY OWNER’S FINANCING PLAN OR FINANCIAL CONDITION, OR THE BONDS, OTHER THAN STATEMENTS MADE BY THE PROPERTY OWNER IN AN OFFICIAL RELEASE, OR FILED WITH THE MUNICIPAL SECURITIES RULEMAKING BOARD, ARE NOT AUTHORIZED BY THE PROPERTY OWNER. THE PROPERTY OWNER IS NOT RESPONSIBLE FOR THE ACCURACY, COMPLETENESS OR FAIRNESS OF ANY SUCH UNAUTHORIZED STATEMENTS. THE PROPERTY OWNER HAS NO OBLIGATION TO UPDATE THIS PERIODIC REPORT OTHER THAN AS EXPRESSLY PROVIDED IN THE DISCLOSURE CERTIFICATE. Dated:_________________ UNIVERSITY PARK INVESTOR, LLC By: Name: Title: Page 986 of 1128 E-129 FORM OF DEVELOPER CONTINUING DISCLOSURE CERTIFICATE – TOLL $_________ CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) SPECIAL TAX BONDS, SERIES 2024 This Continuing Disclosure Certificate (Toll) (the “Disclosure Certificate”) is executed and delivered by the undersigned (the “Developer”) and [__________] as dissemination agent (the “Dissemination Agent”) in connection with the issuance of the bonds captioned above (the “Bonds”) by the City of Palm Desert Community Facilities District No. 2021-1 (University Park) (the “District”). The Bonds (defined below) are being issued pursuant to a resolution adopted by the City Council of the City, acting as legislative body of the District on [__________, 2024], and a Bond Indenture, dated as of July 1, 2021 (the “Original Indenture”) as supplemented by the First Supplemental Indenture, dated [March 1, 2024] (the “First Supplemental Indenture” together with the “Original Indenture” referred to as the “Indenture”), by and between the District and U.S. Bank Trust Company, National Association, as Trustee (the “Trustee”). The Developer covenants and agrees as follows: Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the Developer for the benefit of the holders and beneficial owners of the Bonds. Section 2. Definitions. In addition to the definitions set forth above and in the Indenture, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: “Affiliate” means any person presently directly (or indirectly through one or more intermediaries) currently under managerial control of the Developer, and about whom information could be material to potential investors in their investment decision regarding the Bonds (including without limitation information relevant to the proposed development of the Property or the Developer’s ability to pay the Special Taxes related to the Property prior to delinquency). “Assumption Agreement” means an undertaking of an Obligated Person, or an Affiliate thereof, for the benefit of the holders and beneficial owners of the Bonds containing terms substantially similar to this Disclosure Certificate (as modified for such Obligated Person’s development and financing plans with respect to the Property), whereby such Obligated Person or Affiliate agrees to provide Periodic Reports and notices of significant events, setting forth the information described in sections 4 and 5 hereof, respectively, with respect to the portion of the Property owned by such Obligated Person and its Affiliates and, at the option of the Developer or such Obligated Person, agrees to indemnify the Dissemination Agent (if any) pursuant to a provision substantially in the form of Section 11 hereof. “Dissemination Agent” means the [_________], or any successor Dissemination Agent designated in writing by the Developer, and which has filed with the Developer, the District and the Trustee a written acceptance of such designation, and which is experienced in providing disse mination agent services such as those required under this Disclosure Certificate. “District” means City of Palm Desert Community Facilities District No. 2021-1 (University Park). “Listed Events” means any of the events listed in Section 5(a) of this Disclosure Certificate. “MSRB” means the Municipal Securities Rulemaking Board, which has been designated by the Securities and Exchange Commission as the sole repository of disclosure information for purposes of the Rule, or any other Page 987 of 1128 E-130 repository of disclosure information that may be designated by the Securities and Exchange Commission as such for purposes of the Rule in the future. “Obligated Person” means, as of any Report Date, an owner of all or a portion of the Property that represents more than 20% of the aggregate special tax obligation in the Planned Development. “Official Statement” means the final official statement executed by the District in connection with the issuance of the Bonds. “Participating Underwriter” means Piper Sandler & Co., the original Underwriter of the Bonds. “Periodic Report” means any Periodic Report provided by the Developer pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. “Person” means an individual, a corporation, a partnership, a limited liability company, an association, a joint stock company, a trust, any unincorporated organization or a government or political subdivision thereof. “Planned Development” means the development plan for the Property described in the Official Statement under “PROPERTY OWNERSHIP AND THE DEVELOPMENT” as such information has been updated, if any, in a prior Periodic Report. “Property” means the property owned by the Developer or an Affiliate in the District and subject to the Special Taxes as of the date of determination and (ii) the property in the District that the Developer or an Affiliate sold to a Obligated Person who has not assumed the undertakings of this Disclosure Certificate under Section 6(b) that is owned by such Obligated Person as of the date of determination. “Report Date” means April 1 of any fiscal year. “Rule” means Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. “Special Taxes” means the special taxes of the District levied on taxable property within the District. Section 3. Provision of Periodic Reports. (a) The Developer shall, or, upon written direction of the Developer the Dissemination Agent shall, not later than the Report Date, commencing April 1, 2024, file with the MSRB a Periodic Report which is consistent with the requirements of Section 4 of this Disclosure Certificate. Not later than 15 calendar days prior to the Report Date, the Developer shall provide the Periodic Report to the Dissemination Agent (if different from the Developer). The Developer shall provide a written certification with (or included as a part of) each Periodic Report furnished to the Dissemination Agent (if different from the Developer) to the effect that su ch Periodic Report constitutes the Periodic Report required to be furnished by it under this Disclosure Certificate. The Dissemination Agent may conclusively rely upon such certification of the Developer and shall have no duty or obligation to review the Periodic Report. The Periodic Report may be submitted as a single document or as separate documents comprising a package, and may incorporate by reference other information as provided in Section 4 of this Disclosure Certificate. (b) If the Dissemination Agent does not receive a Periodic Report by 15 calendar days prior to the Report Date, the Dissemination Agent shall send a reminder notice to the Developer that the Periodic Report has not been provided as required under Section 3(a) above. The reminder notice shall instruct the Developer to determine whether its obligations under this Disclosure Certificate have terminated (pursuant to Section 6 below) and, if so, to provide the Dissemination Agent with a notice of such termination in the same manner as for a Listed Event (pursuant to Section 5 below). If the Developer does not provide, or cause the Dissemination Agent to provide, a Periodic Report to the MSRB by the Report Date as required in subsection (a) above, the Dissemination Page 988 of 1128 E-131 Agent shall, in a timely manner, send a notice to the MSRB in substantially the form attached hereto as Exhibit A, with a copy to the Trustee (if other than the Dissemination Agent), the District, the Participating Underwriter and the Developer. (c) With respect to the Periodic Report, the Dissemination Agent shall, to the extent the Periodic Report has been furnished to it, file the Periodic Report with the MSRB and file a report with the Developer (if the Dissemination Agent is other than the Developer), the District and the Participating Underwriter certifying that the Periodic Report has been provided pursuant to this Disclosure Certificate, stating the date it was provided to and filed with the MSRB. Section 4. Content of Periodic Reports. The Developer’s Periodic Report shall contain or incorporate by reference the information set forth in Exhibit B, any or all of which may be Developer or related public entities, which have been submitted to the MSRB or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the MSRB. The Developer shall clearly identify each such other document so included by reference. In addition to any of the information expressly required to be provided in Exhibit B, the Developer’s Periodic Report shall include such further information, if any, as may be necessary to make the specifically required statements, in the light of the circumstances under which they are made, not misleading. Section 5. Reporting of Significant Events. (a) The Developer shall give, or cause to be given, notice of the occurrence of any of the following Listed Events with respect to itself or the Property, if material: (i) bankruptcy or insolvency proceedings commenced by or against the Developer and, if known, any bankruptcy or insolvency proceedings commenced by or against any Affiliate of the Developer which is reasonably likely to have a significant impact on the Developer’s ability to pay Special Taxes or to sell or develop the Property; (ii) failure to pay any taxes, special taxes (including the Special Taxes) or assessments due with respect to the Property on or prior to the delinquency date to the extent that such failure is not promptly cured by the Developer upon discovery thereof; (iii) filing of a lawsuit of which the Developer is aware against the Developer or an Affiliate of the Developer seeking damages, which is reasonably likely to have a significant impact on the Developer’s ability to pay Special Taxes or to sell or develop the Property; (iv) material damage to or destruction of any of the improvements on the Property; and (v) any payment default or other material default by the Developer on any loan with respect to the construction of improvements on the Property. (b) Whenever the Developer obtains knowledge of the occurrence of a Listed Event, the Developer shall as soon as possible determine if such event would be material under applicable Federal securities law. (c) If the Developer determines that knowledge of the occurrence of a Listed Event would be material under applicable Federal securities law, the Developer shall, or shall cause the Dissemination Agent to, promptly file a notice of such occurrence with the MSRB, with a copy to the Trustee, the District and the Participatin g Underwriter. Page 989 of 1128 E-132 Section 6. Duration of Reporting Obligation. (a) All of the Developer’s obligations hereunder shall commence on the date hereof and shall terminate (except as provided in Section 11) on the earliest to occur of the following: (i) upon the legal defeasance, prior redemption or payment in full of all the Bonds, or (ii) if on any date Developer is responsible for less than twenty percent (20%) of the aggregate special tax obligation of the property within the District, or (iii) the date on which the Developer prepays in full all of the Special Taxes attributable to 50% or more of the Property. The Developer shall give notice of the termination of its obligations under this Disclosure Certificate in the same manner as for a Listed Event under Section 5. Nothing herein shall require any person (including, without limitation, the District and the Participating Underwriter) to confirm the satisfaction of any condition for termination of the Developer’s obligations hereunder pursuant to this Section 6. (b) If a portion of the Property developed by the Developer, or any Affiliate of the Developer, is conveyed to a Person that, upon such conveyance, will be an Obligated Person, the obligations of the Developer hereunder with respect to the property in the District owned by such Obligated Person and its Affiliates may be assumed by such Obligated Person or by an Affiliate thereof, and the Developer’s obligations hereunder with respect to such property will be terminated. In order to effect such assumption, such Obligated Person or Affiliate shall enter into an Assumption Agreement in form and substance reasonably satisfactory to the District and the Participating Underwriter. Section 7. Dissemination Agent. The Developer may, from time to time, appoint or engage a Dissemination Agent to assist the Developer in carrying out its obligations under this Disclosure Certificate, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. The initial Dissemination Agent shall be [_________]. The Dissemination Agent may resign by providing thirty days’ written notice to the District, the Developer and the Trustee. Section 8. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the Developer may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied (provided, however, that the Dissemination Agent shall not be obligated under any such amendment that modifies or increases its duties or obligations hereunder without its written consent thereto): (a) if the amendment or waiver relates to the provisions of sections 3(a), 4 or 5(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature, or status of an obligated person with respect to the Bonds, or type of business conducted; and (b) the proposed amendment or waiver either (i) is approved by holders of the Bonds in the manner provided in the Indenture with the consent of holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the holders or beneficial owners of the Bonds. Section 9. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the Developer from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Periodic Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the Developer chooses to include any information in any Periodic Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the Developer shall have no obligation Page 990 of 1128 E-133 under this Disclosure Certificate to update such information or include it in any future Periodic Report or notice of occurrence of a Listed Event. Section 10. Default. In the event of a failure of the Developer to comply with any provision of this Disclosure Certificate, the Trustee shall (upon written direction and only to the extent indemni fied to its satisfaction from any liability, cost or expense, including fees and expenses of its attorneys), and the Participating Underwriter and any holder or beneficial owner of the Bonds may, take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Developer to comply with its obligations under this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an Event of Default under the Indenture, and the sole and exclusive remedy under this Disclosure Certificate in the event of any failure of the Developer to comply with this Disclosure Certificate shall be an action to compel performance. Section 11. Duties, Immunities and Liabilities of Dissemination Agent. The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the Developer agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents (each, an “Indemnified Party”), harmless against any loss, expense and liability which it may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the reasonable costs and expenses (including attorneys’ fees) of defending against any claim of liability, but excluding losses, liabilities, costs and expenses due to an Indemnified Party’s negligence or willful misconduct or failure to perform its duties hereunder. The Dissemination Agent shall be paid compensation for its services provided hereunder from the Administrative Expense Fund established under the Indenture in accordance with the Dissemination Agent’s schedule of fees as amended from time to time, which schedule, as amended, shall be reasonably acceptable, and all reasonable expenses, reasonable legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder. The Dissemination Agent shall have no duty or obligation to review any information provided to it hereunder and shall not be deemed to be acting in any fiduciary capacity for the District, the Developer, the Trustee, the Bond owners, or any other party. The obligations of the Developer under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds. Section 12. Notices. Any notice or communications to be among any of the parties to this Disclosure Certificate may be given as follows: To the Issuer: City of Palm Desert Community Facilities District No. 2021-1(University Park) 73510 Fred Waring Drive Palm Desert, California 92260 Attention: Director of Finance To the Trustee: U.S. Bank Trust Company, National Association 633 West 5th Street, 24th Floor Los Angeles, California 90071 Attn: Global Corporate Trust Services LM-CA-T24T To the Participating Underwriter: Piper Sandler & Co. 120 Vantis, Suite 330 Aliso Viejo, California 92656 Attention: Public Finance To the Developer: [Toll Brothers] 350 Commerce, Suite 200 Irvine, CA 92602 Attention: Salvador Avila Page 991 of 1128 E-134 provided, however, that all such notices, requests or communication may be made by telephone and promptly confirmed by writing. Any person may, by notice given as aforesaid to the other persons listed above, designate a different address or telephone number(s) to which subs equent notices or communications should be sent. Section 13. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the District, the Developer (its successors and assigns), the Trustee, the Dissemination Agent, the Participating U nderwriter and holders and beneficial owners from time to time of the Bonds, and shall create no rights in any other person or entity. All obligations of the Developer hereunder shall be assumed by any legal successor to the obligations of the Developer as a result of a sale, merger, consolidation or other reorganization. Page 992 of 1128 E-135 Section 14. Counterparts. This Disclosure Certificate may be executed in several counterparts, each of which shall be regarded as an original, and all of which shall constitute one and the same instrument. Date: ______, 2024 [TOLL BROTHERS] By: ______________________________________________ Name: ___________________________________________ Title: ____________________________________________ Page 993 of 1128 EXHIBIT A NOTICE OF FAILURE TO FILE PERIODIC REPORT Name of Issuer: City of Palm Desert Community Facilities District No. 2021-1 (University Park) Name of Bond Issue: City of Palm Desert Community Facilities District No. 2021-1 (University Park) Special Tax Bonds, Series 2024 Date of Issuance: ________, 2024 NOTICE IS HEREBY GIVEN that [TOLL BROTHERS] (the “Obligated Person”) has not provided a Periodic Report with respect to the above-named bonds as required by that certain Continuing Disclosure Certificate, dated _______, 2024. The Obligated Person anticipates that the Periodic Report will be filed by _________________. Dated: [TOLL BROTHERS] By: Its: cc: Trustee District Participating Underwriter Developer/Obligated Person Page 994 of 1128 EXHIBIT B PERIODIC REPORT $_______ CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) SPECIAL TAX BONDS, SERIES 2024 This Periodic Report is hereby submitted under Section 4 of the Continuing Disclosure Certificate (the “Disclosure Certificate”) dated ________, 2024, executed by the undersigned (the “Developer”) in connection with the issuance of the above-captioned bonds by City of Palm Desert Community Facilities District No. 2021-1 (University Park) (the “District”). Capitalized terms used in this Periodic Report but not otherwise defined have the meanings given to them in the Disclosure Certificate. I. Development The information in this section is provided as of ____________________ (this date must be not more than 30 days before the date of this Periodic Report). A. Property currently developed by the Developer (the “Property”) in the District (the “District”): Development name: Number of lots (acreage): B. Status of land development, intract improvements, or construction activities with respect to the Property: C. Status of building permits and any significant amendments or material changes to the description of land use or development entitlements for the Property described in the Official Statement or the Periodic Report last filed in accordance with the Disclosure Certificate: D. Status of Special Tax payments on all parcels of Property of the Developer or its Affiliates: Page 995 of 1128 E-138 E. Aggregate property in the District sold (closed escrows) by the Developer to end users: Since the Date of Issuance of the Bonds Since the Last Periodic Report Acres For-sale homes Acres For-sale homes For bulk land sales only (excluding sales of finished lots or completed buildings). F. Status of any land purchase contracts with other merchant builders or owners other than end users, with regard to the Property. G. Updates, if any, to tables in “PROPERTY OWNERSHIP AND THE DEVELOPMENT” in the Official Statement. II. Legal and Financial Status of Developer Unless such information has previously been included or incorporated by reference in a Periodic Report, describe any change in the legal structure of the Developer or its Affiliates or the financial condition and financing plan of the Developer or its Affiliates that would materially and adversely interfere with its ability to complete its development plan described in the Official Statement. III. Change in Development or Financing Plans Unless such information has previously been included or incorporated by reference in a Periodic Report, and other than as provided in Section I, describe any development plans or financing plans relating to the Property that are materially different from the proposed development and financing plan described in the Official Statement. Page 996 of 1128 E-139 IV. Other Material Information In addition to any of the information expressly required above, provide such further information, if any, as may be necessary to make the specifically required statements, in the light of the circumstances under which they are made, not misleading. Certification The undersigned Developer hereby certifies that this Periodic Report constitutes the Periodic Report required to be furnished by the Developer under the Disclosure Certificate. ANY STATEMENTS REGARDING THE DEVELOPER, THE DEVELOPMENT OF THE PROPERTY, THE DEVELOPER’S FINANCING PLAN OR FINANCIAL CONDITION, OR THE BONDS, OTHER THAN STATEMENTS MADE BY THE DEVELOPER IN AN OFFICIAL RELEASE, OR FILED WITH THE MUNICIPAL SECURITIES RULEMAKING BOARD, ARE NOT AUTHORIZED BY THE DEVELOPER. THE DEVELOPER IS NOT RESPONSIBLE FOR THE ACCURACY, COMPLETENESS OR FAIRNESS OF ANY SUCH UNAUTHORIZED STATEMENTS. THE DEVELOPER HAS NO OBLIGATION TO UPDATE THIS PERIODIC REPORT OTHER THAN AS EXPRESSLY PROVIDED IN THE DISCLOSURE CERTIFICATE. Dated:_________________ [TOLL BROTHERS] By: Name: Title: Page 997 of 1128 APPENDIX F BOOK-ENTRY ONLY SYSTEM The information in this Appendix F concerning DTC and DTC’s book-entry only system has been obtained from sources that the District and the Underwriter believe to be reliable, but neither the District nor the Underwriter takes any responsibility for the completeness or accuracy thereof. The following description of the procedures and record keeping with respect to beneficial ownership interests in the Bonds, payment of principal, premium, if any, accreted value and interest on the Bonds to DTC Participants or Beneficial Owners, confirmation and transfers of beneficial ownership interests in the Bonds and other related transactions by and between DTC, the DTC Participants and the Beneficial Owners is based solely on information provided by DTC. The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the Bonds. The Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully registered bond will be issued for each annual maturity of the Bonds, each in the aggregate principal amount of such annual maturity, and will be deposited with DTC. DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Unifor m Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.6 million issues of U.S. and non -U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has a Standard & Poor’s rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. Purchases of Bonds under the DTC system must be made by or through Direct Participants, whic h will receive a credit for the Bonds on DTC’s records. The ownership interest of each actual purchaser of each Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not rec eive certificates representing their ownership interests in the Bonds, except in the event that use of the book -entry system for the Bonds is discontinued. To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not affect any change in beneficial ownership. DTC has no knowledge of the actual Page 998 of 1128 F-141 Beneficial Owners of the Bonds; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the Bond documents. For example, Beneficial Owners of Bonds may wish to ascertain that the nominee holding the Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them. Redemption notices shall be sent to DTC. If less than all of the Bonds within a maturity are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the District as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the District or the Trustee, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC, the Trustee, or the District, subject to any statut ory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the District or the Trustee, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. A Bond Owner shall give notice to elect to have its Bonds purchased or tendered, through its Participant, to the Trustee, and shall effect delivery of such Bonds by causing the Direct Participant to transfer the Participant’s interest in the Bonds, on DTC’s records, to the Trustee. The requirement for physical delivery of Bonds in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Bonds are transferred by Direct Participants on DTC’s records and followed by a book-entry credit of tendered Bonds to the Trustee’s DTC account. DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to the District or the Trustee. Under such circumstances, in the event that a successor depository is not obtained, physical certificates are required to be printed and delivered. The District may decide to discontinue use of the system of book-entry only transfers through DTC (or a successor securities depository). In that event, bonds will be printed and delivered to DTC. THE TRUSTEE, AS LONG AS A BOOK-ENTRY ONLY SYSTEM IS USED FOR THE BONDS, WILL SEND ANY NOTICE OF REDEMPTION OR OTHER NOTICES TO OWNERS ONLY TO DTC. ANY Page 999 of 1128 F-142 FAILURE OF DTC TO ADVISE ANY DTC PARTICIPANT, OR OF ANY DTC PARTICIPANT TO NOTIFY ANY BENEFICIAL OWNER, OF ANY NOTICE AND ITS CONTENT OR EFFECT WILL NOT AFFECT THE VALIDITY OF SUFFICIENCY OF THE PROCEEDINGS RELATING TO THE REDEMPTION OF THE BONDS CALLED FOR REDEMPTION OR OF ANY OTHER ACTION PREMISED ON SUCH NOTICE. Page 1000 of 1128 APPENDIX G CITY OF PALM DESERT INFORMATION GENERAL ECONOMIC DATA CONCERNING THE CITY OF PALM DESERT AND THE COUNTY OF RIVERSIDE The following information concerning the City of Palm Desert, the County of Riverside and surrounding areas is included only for the purpose of supplying general information regarding the community. The Bonds are not an obligation of the City. The following information concerning the City and surrounding areas are included only for the purpose of supplying general information regarding the community. The Local Obligations and the Bonds are not a debt of the City, the State, or any of its political subdivisions and neither said City, said State, nor any of its political subdivisions is liable therefor. Overview The City of Palm Desert (the “City”), incorporated in November 26, 1973 as a general law city, became a charter city through the adoption of Ordinance 858 by the City Council on January 8, 1998. The City is located in the Coachella Valley and is approximately mid-way between the cities of Indio and Palm Springs, 117 miles east of Los Angeles, 118 miles northeast of San Diego and 515 miles southeast of San Francisco. The City occupies an area of approximately 26 square miles. Elevation of the City is 243 feet and the mean temperature is 73.1 degrees. Except in summer, the weather is mild and annual average rainfall is 3.38 inches. According to the State of California Department of Finance, the City population as of January 1, 20 23, was approximately 50,615. Government The City Council is comprised of five members, elected to four -year terms every two years. In 2020, changes were made to the City’s elections as a result of a legal settlement related to the California Voting Rights Act. A new downtown district, comprising about 20% of the City’s population was created which is represented by one (1) elected City Council member and a larger surrounding district, comprising about 80% of the City’s population was created, which is represented by four (4) elected City Council members. The City implements ranked choice voting. The general municipal election is conducted in November of even-numbered years, and councilmembers are sworn in and take office at the first meeting in December fol lowing each election. The City Council selects one of its members to serve as Mayor for a one -year term and appoints a City Manager to conduct the day to day business of the City and the City Clerk. The City Attorney is appointed by City Council. The City operates as “Contract City” utilizing, primarily, agreements with other governmental entities, private companies and individuals to provide services. Contracted services include police and fire protection provided through the County, animal control, health services, legal services and landscape maintenance. Page 1001 of 1128 G-144 TABLE G-1 CITY OF PALM DESERT CITY COUNCIL MEMBERS Name Office Karina Quintanilla Mayor Jan Harnik Mayor Pro Tem Gina Nestande Council Member Evan Trubee Council Member Kathleen Kelly Council Member Labor Force and Employment The main sources of revenue in the City are derived from tourism and sales tax. Historically, the unemployment rate in the City has been lower than that for the County and the State. Table H-2 represents the labor patterns in the City, the County, and the State, from 2018 through 2022. TABLE G-2 CITY OF PALM DESERT, RIVERSIDE COUNTY AND STATE OF CALIFORNIA CIVILIAN LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (2018 through 2022) Year and Area Labor Force Employment Unemployment Unemployment Rate 2018 City 4,600 23,500 1,100 4.4 County 1,090,100 1,041,700 48,400 4.2 State 19,289,500 18,469,900 819,600 4.2 2019 City 24,800 23,800 1,000 4.2 County 1,108,100 1,061,500 46,600 7.3 State 19,413,200 18,617,900 795,300 4.1 2020 City 25,300 22,500 2,800 11.0 County 1,121,100 1,008,000 113,000 10.1 State 18,971,600 17,047,600 1,924,000 10.1 2021 City 25,100 23,500 1,700 6.7 County 1,133,000 1,050,000 83,000 7.3 State 18,973,400 17,586,300 1,387,100 7.3 2022 City 25,700 24,700 1,000 4.1 County 1,152,100 1,104,100 48,000 4.2 State 19,252,000 18,440,900 811,100 4.2 _____________________ Sources: State of California Employment Development Department and U.S. Department of Labor, Bureau of Labor Statistics. Page 1002 of 1128 G-145 TABLE G-3 CITY OF PALM DESERT TAXABLE RETAIL SALES DATA (2018 through 2022) Retail and Food Services 2022(1) 2021 2020 2019 2018 Motor Vehicle and Parts Dealers $ 99,246,260 $ 104,112,043 $ 71,778,937 $ 65,093,550 $ 82,725,948 Home Furnishings and Appliance Stores 132,222,879 136,522,312 104,329,445 122,046,532 132,768,970 Bldg. Matrl. and Garden Equip. and Supplies 124,524,328 114,070,049 91,177,849 84,436,299 82,014,590 Food and Beverage Stores 101,174,758 97,769,886 90,480,466 81,813,404 77,869,295 Gasoline Stations 73,998,256 68,632,423 48,423,179 69,984,089 67,733,653 Clothing and Clothing Accessories Stores 302,316,173 280,644,228 171,418,164 253,045,206 250,503,344 General Merchandise Stores 443,641,889 406,430,767 331,666,692 358,374,011 341,563,319 Food Services and Drinking Places 321,399,596 267,916,540 161,636,255 252,836,165 238,890,591 Other Retail Group 212,907,452 213,601,679 182,370,379 191,502,580 165,413,351 Total Retail and Food Services $1,811,431,591 $1,689,699,927 $1,253,281,366 $1,479,131,836 $1,439,483,061 All Other Outlets $456,756,726 $ 334,880,981 $ 254,088,731 $ 324,470,184 $ 313,228,922 Total All Outlets $2,268,188,317 $2,024,580,908 $1,507,370,097 $1,803,602,020 $1,752,711,983 _____________________ (1) Last year available. Sources: California Department of Tax and Fee Administration. Utilities Water, sewage treatment and wastewater disposal are provided by the Coachella Valley Water District. Southern California Gas Company supplies natural gas to the City and electric power is provided by the Southern California Edison Company. Waste Disposal is provided by Burrtec Waste & Recycling Services. Transportation Inter-City transportation is provided by SunLine Transit Agency which provides service throughout the entire Coachella Valley. The City’s central highways are California Highway 111 and 74 w hich connect to US Interstate 10 and to California Highway 62 and 86. Shipping is provided by numerous truck carriers which have overnight service to Los Angeles, San Francisco, San Diego and Phoenix. Rail transportation is provided by the Southern Pacific Railroad located in Indio, 10 miles east of the City, and by Amtrak, which has two stations located in Coachella Valley. A full service airport is located in Palm Springs, 12 miles northwest of the City, with approximately seven carriers providing service. The airport has an 8,500 foot runway and general aviation facilities. There is also a private airport in Bermuda Dunes, eight miles northeast of the City. Community Services The City provides both police and fire protection through contracts with the County of Riverside. The Riverside County Public Library System provides library services to the City. The City/County also operates a 43,000 square foot public library on the College of the Desert campus which is jointly used by the public and the College of the Desert. The Desert Willow Golf Resort, two championship 18-hole, public golf course, is located on approximately 540 acres in the northern area of the City. This golf course also features a 33,000 square foot clubhouse with restaurant, dining and banquet facilities. The City also is home to five other public golf courses and resorts and 20 private or semi-private golf clubs and resorts. Page 1003 of 1128 G-146 Population The following sets forth the City, the County and the State population estimates as of January 1 for the years 2019-2023: TABLE G-4 CITY OF PALM DESERT, RIVERSIDE COUNTY AND STATE OF CALIFORNIA Estimated Population (2019-2023) Year (January 1) City of Palm Desert Riverside County State of California 2019 53,695 2,419,057 39,605,361 2020 53,828 2,440,719 39,648,938 2021 50,683 2,418,727 39,286,510 2022 50,626 2,430,976 39,078,674 2023 50,615 2,439,234 38,940,231 _________________________ Source: State of California Department of Finance, Demographic Research Unit. Employment and Industry The unemployment rate in the Riverside-San Bernardino-Ontario MSA was 5.1 percent in November 2023, up from a revised 5.1 percent in October 2023, and above the year-ago estimate of 4.1 percent. This compares with an unadjusted unemployment rate of 4.9 percent for California and 3.5 percent for the nation during the same period. The unemployment rate was 5.1 percent in Riverside County, and 5.0 percent in San Bernardino County. Page 1004 of 1128 G-147 The following table summarizes the civilian labor force, employment and unemployment in the County for calendar years 2018-2022. TABLE G-5 RIVERSIDE-SAN BERNARDINO METROPOLITAN STATISTICAL AREA (RIVERSIDE COUNTY) Page 1005 of 1128 G-148 CIVILIAN LABOR FORCE, EMPLOYMENT AND UNEMPLOYMENT (Annual Averages) TITLE 2018 2019 2020 2021 2022(1) Civilian Labor Force(2) 2,045,200 2,075,200 2,095,800 2,125,300 2,160,600 Civilian Employment 1,957,500 1,991,200 1,888,900 1,968,700 2,071,200 Civilian Unemployment 87,700 84,000 206,900 156,600 89,400 Civilian Unemployment Rate 4.3% 4.0% 9.9% 7.4% 4.1% Total, All Industries(3) 1,521,100 1,568,100 1,509,900 1,588,800 1,674,200 Total Farm 14,500 15,400 14,100 13,700 13,900 Total Nonfarm 1,506,600 1,552,700 1,495,800 1,575,100 1,660,300 Goods Producing 206,800 209,700 202,200 207,700 216,400 Mining and Logging 1,200 1,200 1,300 1,400 1,600 Construction 105,200 107,200 104,900 110,100 115,200 Manufacturing 100,400 101,300 96,000 96,100 99,600 Durable Goods 65,700 65,700 61,200 60,000 61,100 Nondurable Goods 34,700 35,600 34,800 36,200 38,500 Service Providing 1,299,800 1,343,100 1,293,700 1,367,400 1,443,900 Trade, Transportation & Utilities 379,400 395,100 406,900 443,200 464,500 Wholesale Trade 66,100 67,700 65,600 67,400 69,700 Retail Trade 181,200 180,700 168,800 177,000 180,600 Transportation, Warehousing & Utilities 132,100 146,600 172,500 198,800 214,200 Information 11,400 11,500 9,600 9,700 10,200 Financial Activities 44,600 45,000 44,100 45,200 46,800 Finance & Insurance 25,300 24,800 24,600 24,400 24,600 Real Estate & Rental & Leasing 19,300 20,200 19,500 20,700 22,200 Professional & Business Services 151,400 157,900 154,800 169,400 179,100 Professional, Scientific & Technical Services 42,700 44,000 42,900 46,100 49,300 Management of Companies & Enterprises 8,300 8,800 8,600 8,700 8,700 Administrative & Support & Waste Services 100,400 105,100 103,400 114,600 121,200 Private Educational & Health Services 239,500 250,300 248,800 254,300 266,400 Private Educational Services 19,400 19,900 18,100 18,100 20,000 Health Care & Social Assistance 220,100 230,400 230,600 236,200 246,300 Leisure & Hospitality 170,600 175,900 141,300 160,200 179,600 Arts, Entertainment & Recreation 19,800 20,500 13,900 17,200 20,000 Accommodation & Food Services 150,900 155,400 127,400 143,000 159,600 Other Services 45,800 46,200 40,200 43,600 47,900 Government 257,200 261,200 248,000 242,000 249,400 Federal Government 20,700 21,100 22,100 21,100 20,900 State Government 30,600 31,100 31,300 30,400 28,300 Local Government 205,900 209,000 194,600 190,500 200,300 ___________________________ (1) Latest year available. (2) Civilian labor force data are by place of residence; include self-employed individuals, unpaid family workers, household domestic workers, & workers on strike. Data may not add due to rounding. The unemployment rate is calculated using unrounded data. (3) Industry employment is by place of work; excludes self-employed individuals unpaid family workers, household domestic workers, & workers on strike. Data may not add due to roundin g. Source: State of California Employment Development Department. Page 1006 of 1128 G-149 TABLE G-6 COUNTY OF RIVERSIDE Major Employers (2024) Employer Name Location Industry 1882 Cantina Temecula Restaurants Abbott Vascular Inc Temecula Hospital Equipment & Supplies-Mfrs Abbott Vascular Inc Temecula Hospital Equipment & Supplies-Mfrs Amazon Fulfillment Ctr Moreno Valley Mail Order Fulfillment Service Citrus Club La Quinta Clubs Coachella Valley Unified SCH Thermal School Districts Collins Aerospace Riverside Aircraft Components-Manufacturers Corona City Hall Corona City Hall Corona Regional Medical Ctr Corona Hospitals Department-Corrections-Rehab Norco Government Offices-State Desert Regional Medical Ctr Palm Springs Hospitals Eisenhower Health Rancho Mirage Hospitals Fantasy Springs Resort Casino Indio Casinos Jurupa School District Supt Riverside School Districts KSL Development Corp La Quinta Golf Courses Riverside Community Hospital Riverside Hospitals Riverside County Admin Ctr Riverside Government Offices-County Riverside County Office of Edu Riverside Schools Riverside County Public Health Riverside Government Offices-County Riverside University Health Moreno Valley Hospitals Southwest Healthcare System Temecula Health Care Management Starcrest of California Perris Online Retailers & Marketplaces ________________________ Source: State of California Employment Development Department. Page 1007 of 1128 Page 1008 of 1128 $_______ CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) SPECIAL TAX BONDS, SERIES 2024 BOND PURCHASE AGREEMENT ________, 2024 City of Palm Desert Community Facilities District No. 2021-1 (University Park) 73510 Fred Waring Drive Palm Desert, CA 92260 Ladies and Gentlemen: Piper Sandler & Co., as underwriter (the “Underwriter”), acting not as a fiduciary or agent for you, but on behalf of itself, offers to enter into this Bond Purchase Agreement (this “Purchase Agreement”) with the City of Palm Desert Community Facilities District No. 2021 -1 (University Park) (the “Community Facilities District”), which upon acceptance will be binding upon the Underwriter and the Community Facilities District. The agreement of the Und erwriter to purchase the Bonds (as hereinafter defined) is contingent upon the Community Facilities District satisfying all of the obligations imposed upon them under this Purchase Agreement. This offer is made subject to the Community Facilities District’s acceptance by the execution of this Purchase Agreement and its delivery to the Underwriter at or before 11:59 P.M., local time, on the date hereof, and, if not so accepted, will be subject to withdrawal by the Underwriter upon notice delivered to the Com munity Facilities District at any time prior to the acceptance hereof by the Community Facilities District. All capitalized terms used herein, which are not otherwise defined, shall have the meaning provided for such terms in that certain Bond Indenture, dated as of July 1, 2021 (the “Original Indenture”), as supplemented by the First Supplemental Indenture, dated as of [March 1, 2024] (the “First Supplemental Indenture” together with the “Original Indenture” is referred to as the “Indenture”), by and between the Community Facilities District and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”). 1. Purchase, Sale and Delivery of the Bonds. Subject to the terms and conditions and in reliance upon the representations, warranties and agreements set forth herein: the Underwriter hereby agrees to purchase from the Community Facilities District and the Community Facilities District hereby agrees to sell to the Underwriter all (but not less than all) of the $_____ aggregate principal amount of the City of Palm Desert Community Facilities District No. 2021-1 (University Park) Special Tax Bonds, Series 2024 (the “Bonds”), dated the Closing Date (as hereinafter defined), bearing interest at the rates and maturing on the dates and in the princi pal amounts set forth in Exhibit A hereto. The Bonds shall be subject to redemption as set forth in the Indenture and Official Statement. Page 1009 of 1128 2 The purchase price for the Bonds shall be $_______ (being 100% of the aggregate principal amount thereof, plus an original issue premium of $_______ and less an Underwriter’s discount of $________). The Underwriter agrees to make a bona fide public offering of all of the Bonds initially at the public offering prices (or yields) set forth in Exhibit A attached hereto and incorporated herein by reference. Subsequent to the initial public offering, the Underwriter reserves the right to change the public offering prices (or yields) as it deems necessary in connection with the marketing of the Bonds, provided that the Underwriter shall not change the interest rates set forth in Exhibit A. The Bonds may be offered and sold to certain dealers at prices lower than such initial offering prices. The Bonds shall be substantially in the form described in, shall be issued and secure d under the provisions of, and shall be payable from the Net Taxes as provided in the Indenture, the Preliminary Official Statement (as hereinafter defined), and the Mello -Roos Community Facilities Act of 1982, as amended (Section 53311 et seq. of the Government Code of the State of California) (the “Community Facilities District Act”). The issuance of the Bonds has been duly authorized by the City Council of the City of Palm Desert (the “City”), as the legislative body for the Community Facilities Distric t pursuant to a resolution (the “Community Facilities District Resolution of Issuance”) adopted on _______, 2024. The proceeds of the Bonds will be used to: (i) finance the acquisition of certain public improvements needed with respect to the development of property located within the Community Facilities District, including public improvements to be owned by the City and water and sewer facilities to be owned and operated by the Coachella Valley Water District; (ii) fund a reserve account for the Bonds; and (iii) pay costs of issuance for the Bonds. The Bonds are being issued on a parity with the $15,200,000 initial par amount City of Palm Desert Community Facilities District No. 2021-1 (University Park) Special Tax Bonds, Series 2021 (the “2021 Bonds”). The Bonds shall be substantially in the form described in, shall be issued and secured under the provisions of, and shall be payable from special taxes pledged thereto as provided in the Indenture. (a) The Community Facilities District hereby acknowledges that the Underwriter is entering into this Purchase Agreement in reliance on the representations, warranties and agreements made by the Community Facilities District herein. The Community Facilities District acknowledges and agrees that (i) the purchase and sale of the Bonds pursuant to this Purchase Agreement is an arm’s-length commercial transaction between the Community Facilities District and the Underwriter, (ii) in connection therewith and with the discussions, undertakings and procedures leading up to the consummation of such transaction, the Underwriter is and has been acting solely as principal and not as the agent or fiduciary of the Community Facilities District, (iii) the Underwriter has not assumed an advisory or fiduciary responsibility in favor of the Community Facilities District with respect to (a) the offering of the Bonds or the process leading thereto (whether or not the Underwriter, or any affiliate of the Underwriter, has advised or is currently advising the Community Facilities District on other matters) or (b) any other obligations to the Community Facilities District with respect to the offering contemplated hereby, except the obligations expressly set forth in this Purchase Agreement or otherwise imposed by law, (iv) the Underwriter has financial interests that differ from those of the Community Facilities District Page 1010 of 1128 3 and (v) the Community Facilities District has consulted their own legal, financial and other advisors to the extent they have deemed appropriate in connection with this transaction. The Community Facilities District acknowledges that it has previously provided the Underwriter with an acknowledgement of receipt of the required Underwriter disclosure under Rule G-17 of the Municipal Securities Rulemaking Board (“MSRB”). The Community Facilities District acknowledges and represents that it has engaged Del Rio Advisors, LLC (the “Municipal Advisor”), as its municipal advisor (as defined in Securities and Exchange Commission Rule 15Ba1) and will rely solely on the financial advi ce of the Municipal Advisor with respect to the Bonds. (b) Pursuant to the authorization of the Community Facilities District, the Underwriter has distributed copies of the Preliminary Official Statement dated _____, 2024, relating to the Bonds, which, together with the cover page, inside cover page and appendices thereto is herein called the “Preliminary Official Statement.” By its acceptance of this Purchase Agreement, the Community Facilities District hereby consents to the use by the Underwriter of the Pre liminary Official Statement, and the Community Facilities District agrees to execute a final Official Statement relating to the Bonds (the “Official Statement”) which will consist of the Preliminary Official Statement with such changes as may be made thereto, with the approval of Richards, Watson & Gershon, A Professional Corporation, Bond Counsel (“Bond Counsel”), Best Best & Krieger LLP, Disclosure Counsel (“Disclosure Counsel”), and the Underwriter, and to provide copies thereof to the Underwriter as set forth herein. The Community Facilities District hereby authorizes and requires the Underwriter to use and promptly distribute, in connection with the offer and sale of the Bonds, the Preliminary Official Statement, the Official Statement and any supplement or amendment thereto. The Community Facilities District further authorizes the Underwriter to use and distribute, in connection with the offer and sale of the Bonds, the Indenture, the Continuing Disclosure Agreement executed by the Community Facilities District in connection with the Bonds (the “Continuing Disclosure Agreement”), this Purchase Agreement and all information contained herein, and all other documents, certificates and statements furnished by or on behalf of the Community Facilities District to the Underwriter in connection with the transactions contemplated by this Purchase Agreement. (c) To assist the Underwriter in complying with subsection (b)(5) of Securities and Exchange Commission Rule 15c2-12 (the “Rule”), the Community Facilities District will undertake pursuant to the Continuing Disclosure Agreement, in the form attached to the Official Statement as an appendix, to provide annual reports and notices of certain enumerated events. A description of this undertaking is set forth in the Preliminary Official Statement and will also be set forth in the Official Statement. (d) Except as the Underwriter and the Community Facilities District may otherwise agree, the Community Facilities District will deliver to the Underwriter, at the offices of Bond Counsel in Los Angeles, California, or at such other location as may be mutually agreed upon by the Underwriter and the Community Facilities District, the documents hereinafter mentioned; and the Community Facilities District will deliver to the Underwrite r through the facilities of The Depository Trust Company (“DTC”), the Bonds, in definitive form (all Bonds bearing CUSIP numbers), duly executed by the Community Facilities District and authenticated by the Trustee in the manner provided for in the Indenture and the Community Facilities District Act at 8:30 a.m. California time, on _______, 2024 (the “Closing Date”), and the Underwriter will accept such delivery and pay the purchase price of the Bonds as set forth in the second paragraph of this Section by wire transfer, payable in federal or other immediately available funds (such delivery and payment being herein referred to as the “Closing”). The Bonds shall be in fully registered book-entry form (which may be typewritten) and shall be registered in the name of Cede & Co., as nominee of DTC. Page 1011 of 1128 4 2. Representations, Warranties and Covenants of the Community Facilities District. The Community Facilities District represents, warrants and covenants to the Underwriter: (a) The Community Facilities District is duly organized and validly existing as a community facilities district under the laws of the State of California (the “State”), and has the full legal right, power and authority, among other things, (i) upon satisfaction of the conditions in this Purchase Agreement and the Indenture, to issue the Bonds as provided herein, and (ii) to secure the Bonds in the manner set forth in the Indenture. (b) The City Council has the full legal right, power and authority to adopt the resolutions in connection with the initial formation of the Community Facilities District and the levy of the Special Taxes (the “Community Facilities District Resolutions”) and has caused to be recorded in the real property of records of the County of Riverside, a notice of special tax lien (the “Notice of Special Tax Lien” and together, with the Community Facilities District Resolutions, and the Community Facilities District Resolution of Issuance, the “Resolutions and Formation Documents”), and the Community Facilities District has the full legal right, power and authority (i) to enter into this Purchase Agreement, the Indenture, the Continuing Disclosure Agreement, and the Acquisition Agreement dated June 24, 2021 (the “Acquisition Agreement”), by and among the City, University Park Investor, LLC (the “Developer”) and the Community Facilities District (collectively, the “Community Facilities District Documents”), (ii) to issue, sell and deliver the Bonds to the Underwriter as provided herein, and (iii) to carry out and consummate all other transactions on its part contemplated by the Official Statement and each of the Community Facilities District Documents, and the Community Facilities District and the City Council have complied with all provisions of applicable law, including the Community Facilities District Act, in all matters relating to such transactions. (c) The Community Facilities District has duly authorized (i) the execution and delivery by the Community Facilities District of the Bonds and the execution, delivery and due performance by the Community Facilities District of its obligations under the Community Facilities District Documents, (ii) the distribution and use of the Preliminary Official Statement and execution, delivery and distribution of the Official Statement, and (iii) the taking of any an d all such action as may be required on the part of the Community Facilities District to carry out, give effect to and consummate the transactions on its part contemplated by such instruments. All consents or approvals necessary to be obtained by the Community Facilities District in connection with the foregoing have been received, and the consents or approvals so received are still in full force and effect. (d) The Resolutions and Formation Documents have been duly adopted by the City Council and are in full force and effect; and the Community Facilities District Documents, when executed and delivered by the Community Facilities District and the other party thereto, will constitute a legal, valid and binding obligation of the Community Facilities District enfor ceable against the Community Facilities District in accordance with their terms, except as enforceability thereof may be limited by bankruptcy, insolvency or other laws affecting creditors’ rights generally. (e) When delivered to the Underwriter, the Bonds will have been duly authorized by the City Council and duly executed, issued and delivered by the Community Facilities District and will constitute legal, valid and binding special obligations of the Community Facilities District enforceable against the Community Facilities District in accordance with their respective terms, except as enforceability thereof may be limited by bankruptcy, insolvency or other laws affecting creditors’ rights generally, and will be entitled to the benefit and security of the Inden ture. Page 1012 of 1128 5 (f) The information (excluding information under the caption “PROPERTY OWNERSHIP AND THE DEVELOPMENT” and information relating to The Depository Trust Company (“DTC”) and its book-entry system) contained in the Preliminary Official Statement is, and as of the Closing Date such information (excluding information under the caption “PROPERTY OWNERSHIP AND THE DEVELOPMENT” and information relating to DTC and its book -entry system)” in the Official Statement will be true and correct in all material respects, and the Preliminary Official Statement does not as of its date and the Official Statement will not as of the Closing Date contain any untrue or misleading statement of a material fact or omit to state any material fact (excluding in each case information under the caption “PROPERTY OWNERSHIP AND THE DEVELOPMENT” and information relating to DTC and its book-entry system) necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. (g) If, at any time prior to the earlier of (i) receipt of notice from the Underwriter that the Official Statement is no longer required to be delivered under Rule 15c2-12 or (ii) the Closing (as described in Section 1(d) above), any event known to the officers of the Community Facilities District participating in the issuance of the Bonds occurs with respect to the Community Facilities District or the City as a result of which the Official Statement as then amended or supplemented might include an untrue statement of a material fact, or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, the Community Facilities District shall promptly notify the Underwriter in writing of such event. A ny information supplied by the Community Facilities District for inclusion in any amendments or supplements to the Official Statement will not contain any untrue or misleading statement of a material fact relating to the Community Facilities District or th e City or omit to state any material fact relating to the Community Facilities District or the City necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. (h) Neither the adoption of the Resolutions and Formation Documents, the execution and delivery of the Community Facilities District Documents, nor the consummation of the transactions on the part of the Community Facilities District contemplated herein or therein or the compliance by the Community Facilities District with the provisions hereof or thereof will conflict with, or constitute on the part of the Community Facilities District, a violation of, or a breach of or default under, (i) any material indenture, mortgage, commitment, note or other agreement or instrument to which the Community Facilities District is a party or by which it is bound, (ii) any provision of the State Constitution or (iii) any existing law, rule, regulation, ordinance, judgment, order or decree to which the Community Facilities District or the City (or the members of the City Council or any of its officers in their respective capacities as such) is subject, in each instance that would have a material adverse effect on the ability of the Community Facilities District to perform its obligations under the Community Facilities District Documents. (i) The Community Facilities District has never been in default at any time, as to principal of or interest on any obligation which it has issued, which default may have an adverse effect on the ability of the Community Facilities District to consummate the transactions on its part under the Community Facilities District Documents, except as specifically disclosed in the Official Statement; and except as provided in the Indenture, the Community Facilities District has not entered into any contract or arrangement of any kind which might give rise to any lien or encumbrance on the Special Taxes. (j) Except as is specifically disclosed in the Official Statement, to the best knowledge of the Community Facilities District, there is no action, suit, proceeding, inquiry or Page 1013 of 1128 6 investigation, at law or in equity, before or by any court, public board or body, pending with respect to which the Community Facilities District or the City has been served with process or threatened against the Community Facilities District or the City, which in any way questions the powers of the City Council, the City or the Community Facilities District, or the validity of any proceeding taken by the City Council in connection with the issuance of the Bonds, or wherein an unfavorable decision, ruling or finding could materially adversely affect the transactions contemplated by the Community Facilities District Documents, or which, in any way, could adversely affect the validity or enforceability of the Resolutions and Formation Documents, the Bonds or the Community Facilities District Documents or, to the knowledge of the Community Facilities District, which in any way questions the exclusion from gross income of the recipients thereof of the interest on the Bonds for federal income tax purposes or in any other way questions the status of the Bonds under State tax laws or regulations. (k) Any certificate signed by an official of the Community Facilities District authorized to execute such certificate and delivered to the Underwriter in connection with the transactions contemplated by the Community Facilities District Documents shall be deemed a representation and warranty by the Community Facilities District to the Underwriter as to t he truth of the statements therein contained. (l) The Community Facilities District has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that it is a Community Facilities District whose arbitrage certifications may not be relied upon. (m) The Bonds will be paid from Net Taxes (as defined in the Indenture) received by the Community Facilities District and amounts held in certain funds and accounts established and pledged under the Indenture. (n) The Special Taxes may lawfully be levied in accordance with the rate and method of apportionment of the Special Tax relating to the Community Facilities District (the “Rate and Method”), the Resolutions and Formation Documents as described in the Preliminary Official Statement and the Official Statement, and, when levied, will be secured by a lien on the property on which they are levied. (o) The Indenture creates a valid pledge of, and first lien upon the Net Taxes deposited thereunder, and the amounts held in certain funds and accounts established and pledged under the Indenture, subject in all cases to the provisions of the Indenture permitting the application thereof for the purposes and on the terms and conditions set forth therein. (p) Except as disclosed in the Preliminary Official S tatement and the Official Statement, in the last five years, neither the City, nor the Community Facilities District, nor any other entity for which the City Council is the legislative body, has failed to comply with any undertaking under Rule 15c2-12 in any material respect. The Community Facilities District hereby consents to the preparation and distribution of the Official Statement, consisting of the Preliminary Official Statement with such changes as are noted thereon and as may be made thereto, with the approval of Bond Counsel, Disclosure Counsel and the Underwriter, from time to time prior to the Closing Date. The Community Facilities District hereby consents to any prior use of and authorizes the future use by the Underwriter, in connection with the offering and sale of the Bonds, of the Preliminary Page 1014 of 1128 7 Official Statement, the Official Statement, the Joint Community Facilities Agreement dated as of June 8, 2021 (the “CVWD JCFA”), by and among the City, the Coachella Valley Water District, and the Developer with respect to the Bonds, this Purchase Agreement, and the other Community Facilities District Documents in connection with the transactions contemplated by this Purchase Agreement. The Community Facilities District covenants with the Underwriter that the Community Facilities District will cooperate with the Underwriter (at the cost of the Underwriter), in qualifying the Bonds for offer and sale under the securities or Blue Sky laws of such jurisdictions of the United States as the Underwriter may reasonably request; provided, however, that the Community Facilities District shall not be required to consent to suit or to service of process, or to qualify to do business, in any jurisdiction. The Community Facilities District consents to the use by the Und erwriter of the Community Facilities District Documents in the course of its compliance with the securities or Blue Sky laws of the various jurisdictions. The execution and delivery of this Purchase Agreement by the Community Facilities District shall constitute a representation by the Community Facilities District to the Underwriter that the representations and warranties contained in this Section 2 with respect to the Community Facilities District are true as of the date hereof. 3. Conditions to the Obligations of the Underwriter. The obligation of the Underwriter to accept delivery of and pay for the Bonds on the Closing Date shall be subject, at the option of the Underwriter, to the accuracy in all material respects of the representations and warranties on the part of the Community Facilities District contained herein, to the accuracy in all material respects of the statements of the officers and other officials of the Community Facilities District made in any certificates or other documents furnished pursuant to the provisions hereof, to the performance by the Community Facilities District of their obligations to be performed hereunder at or prior to the Closing Date and to the following additional conditions: (a) At the Closing Date, the Community Facilities District Resolutions and the Community Facilities District Documents shall be in full force and effect, and shall not have been amended, modified or supplemented, except as may have been agreed to in writing by the Underwriter, and there shall have been taken in connection therewith, with the issuance of the Bonds, and with the transactions contemplated thereby, all such actions as, in the opinion of Bond Counsel, shall be necessary and appropriate. (b) At the Closing Date, except as described in the Preliminary Official Statement, the Community Facilities District shall not be, in any respect material to the transactions referred to herein or contemplated hereby, in breach of or in default under, any law or administrative rule or regulation of the State, the United States of America, or of any department, division, agency or instrumentality of either thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenture, contract, agreement or other inst rument to which the Community Facilities District is a party or is otherwise subject or bound, and the performance by the Community Facilities District of its obligations under the Bonds, the Community Facilities District Resolutions, the Indenture, the other Community Facilities District Documents, and any other instruments contemplated by any of such documents, and compliance with the provisions of each thereof, or the performance of the conditions precedent to be performed hereunder, will not conflict with or constitute a breach of or default under any applicable law or administrative rule or regulation of the State, the United States of America, or of any department, division, agency or instrumentality of either thereof, or under any applicable court or administrative decree or order, or under any loan Page 1015 of 1128 8 agreement, note, resolution, indenture, contract, agreement or other instrument to which the Community Facilities District is a party or is otherwise subject or bound, in any manner which would materially and adversely affect the performance by the Community Facilities District of its obligations under the Indenture, the other Community Facilities District Documents, the Bonds or the performance of the conditions precedent to be performed by the Community Fa cilities District hereunder. (c) The information contained in the Official Statement is, as of the Closing Date and as of the date of any supplement or amendment thereto pursuant hereto, true and correct in all material respects and does not, as of the Closing Date or as of the date of any supplement or amendment thereto, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances un der which they were made, not misleading. (d) Between the date hereof and the Closing Date, the market price or marketability, at the initial offering prices set forth on the cover page of the Official Statement, of the Bonds or the ability of the Underwriter to enforce contracts for the sale of the Bonds, shall not have been materially adversely affected, in the reasonable judgment of the Underwriter (evidenced by a written notice to the Community Facilities District terminating the obligation of the Underwri ter to accept delivery of and pay for the Bonds), by reason of any of the following: 1. Legislation introduced in or enacted (or resolution passed) by the Congress of the United States of America or recommended to the Congress by the President of the United States, the Department of the Treasury, the Internal Revenue Service, or any member of Congress, or favorably reported for passage to either House of Congress by any committee of such House to which such legislation had been referred for consideration, or a decision rendered by a court established under Article III of the Constitution of the United States of America or by the Tax Court of the United States of America, or an order, ruling, regulation (final, temporary or proposed), press release or other form of notice issued or made by or on behalf of the Treasury Department of the United States of America or the Internal Revenue Service, with the purpose or effect, directly or indirectly, of imposing federal income taxation upon such interest as would be received by any owners of the Bonds beyond the extent to which such interest is subject to taxation as of the date hereof; or 2. Legislation introduced in or enacted (or resolution passed) by the Congress or an order, decree or injunction issued by any court of competent jurisdiction, or an order, ruling, regulation (final, temporary or proposed), press release or other form of notice issued or made by or on behalf of the Securities and Exchange Commission (the “SEC”), or any other governmental agency having jurisdiction of the subject matter, to the effect that obligations of the general character of the Bonds, including any or all underlying arrangements, are not exempt from registration under or other requirements of the Securities Act of 1933, as amended (the “Securities Act”), or that the Indenture is not exempt from qualification under or other requirements of the Trust Indenture Act of 1939, as amended (the “Trust Indenture Act”), or that the issuance, offering or sale of obligations of the general character of the Bonds, including any or all underlying arrangements, as contemplated hereby or by the Official Statement or otherwise is or would be in violation of the federal securities laws as amended and then in effect; or 3. A general suspension of trading on the New York Stock Exchange or other major exchange shall be in force, or minimum or maximum prices for trading shall have been fixed and be in force, or maximum ranges for prices for securities shall have been required and be in Page 1016 of 1128 9 force on any such exchange, whether by virtue of determination by that exchange or by order of the SEC or any other governmental authority having jurisdiction; or 4. The introduction, proposal or enactment of any amendment to the federal or State Constitution or any action by any feder al or State court, legislative body, regulatory body or other authority materially adversely affecting the tax status of the Community Facilities District, its property, income, securities (or interest thereon), the validity or enforceability of Special Taxes, or the ability of the Community Facilities District to issue the Bonds as contemplated by the Indenture and the Official Statement; or 5. Any event occurring, or information becoming known which, in the reasonable judgment of the Underwriter, makes untrue in any material respect any statement or information contained in the Preliminary Official Statement or in the Official Statement, or has the effect that the Preliminary Official Statement or the Official Statement contains any untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; or 6. Any national securities exchange, the Comptroller of the Currency, or any other governmental authority, shall impose as to the Bonds, or obligations of the general character of the Bonds, any material restrictions not now in force, or increase materially those now in force, with respect to the extension of credit by, or the charge to the net capital requirements of, the Underwriter; or 7. There shall have occurred (1) an outbreak or escalation of hostilities or the declaration by the United States of a national emergency or war or (2) any other calamity or crisis in the financial markets of the United States or elsewhere or the escalation of such calamity or crisis, the effect of which on the financial markets of the United States is such as, in the reasonable judgment of the Underwriter, would materially adversely affect the market for or market price of the Bonds; or 8. Any event or circumstance shall exist that either makes untrue or incorrect in any material respect any statement or information in the Official Statement (other than any statement provided by the Underwriter) or is not reflected in the Official Statement but should be reflected therein in order to make the statements therein, in the light of the circumstances under which they were made, not misleading and, in either such event, the Community Facilities District refuses to permit the Official Statement to be supplemented to supply such statement or information, or the effect of the Official Statement as so supplemented is to materially adversely affect the market price or marketability of the Bonds or the ability of the Underwriter to enforce contracts for the sale of the Bonds; or 9. A general banking moratorium shall have been declared by federal or State authorities having jurisdiction and be in force; or 10. A material disruption in securities settlement, payment or clearance services affecting the Bonds shall have occurred; or 11. Any new restriction on transactions in securities materially affecting the market for securities (including the imposition of any limitation on interest rates) or the extension of credit by, or a charge to the net capital requirements of, underwriters shall have been established by Page 1017 of 1128 10 the New York Stock Exchange, the SEC, any other federal or State agency or the Congress of the United States, or by Executive Order; or 12. A decision by a court of the United States shall be rendered, or a stop order, release, regulation or no-action letter by or on behalf of the SEC or any other governmental agency having jurisdiction of the subject matter shall have been issued or made, to the effect that the issuance, offering or sale of the Bonds, including the underlying obligations as contemplated by this Purchase Agreement or by the Official Statement, or any document relating to the issuance, offering or sale of the Bonds, is or would be in violation of any provision of the federal securities laws at the Closing Date, including the Securities Act, the Securities Exchange Act of 1934, as amended and the Trust Indenture Act; or 13. Any proceeding shall have been commenced or be threatened in writing by the SEC against the City or the Community Facilities District; or (e) At or prior to the Closing Date, the Underwriter shall have received a counterpart original or certified copy of the following documents, in each case satisfactory in form and substance to the Underwriter and Bond Counsel: 1. The Official Statement, executed on behalf of the Community Facilities District by an authorized officer; 2. The Indenture, duly executed and delivered by the Community Facilities District and the Trustee; 3. The Resolutions and Formation Documents, together with a certificate dated as of the Closing Date of the City Clerk to the effect that the Community Facilities District Resolutions are true, correct and complete copies of the ones duly adopted by the City Council; 4. The Continuing Disclosure Agreement executed and delivered by the Community Facilities District and Willdan Financial Services, as dissemination agent; 5. An unqualified approving opinion of Bond Counsel for the Bonds in the form attached to the Official Statement; 6. A supplemental opinion or opinions of Bond Counsel, dated the Closing Date and addressed to the Community Facilities District and the Underwriter, to the effect that: (i) The Community Facilities District is duly organized and validly existing as a community facilities district under and by virtue of the Constitution and laws of the State (including the Act); (ii) The City Council of the City, acting as legislative body of the Community Facilities District, has the full legal right, power and authority to adopt the Resolution s and Formation Documents; (iii) the statements contained in the Official Statement under the captions “INTRODUCTION – Sources of Payment for the Bonds,” “INTRODUCTION – Description of the Bonds,” “THE BONDS” (other than information relating to DTC and its book -entry only system Page 1018 of 1128 11 and information in the section entitled “Debt Service Schedule”, as to which no opinion is expressed), “SOURCES OF PAYMENT FOR THE BONDS,” “TAX EXEMPTION,” and in Appendices B and E thereto, excluding any material that may be treated as included under such captions by reference to other documents, insofar as such statements expressly summarize certain provisions of the Indenture and Bond Counsel’s final opinion are accurate in all material respects; (iv) this Purchase Agreement and the Continuing Disclosure Agreement have been duly executed and delivered by, and constitute valid and binding obligations of, the Community Facilities District, subject to bankruptcy, insolvency, reorganization, moratorium and other laws affecting enforcement of creditors’ rights in general a nd to the application of equitable principles if equitable remedies are sought; (v) the Bonds are not subject to the registration requirements of the Securities Act of 1933, as amended, and the Indenture is exempt from qualification under the Trust Indenture Act of 1939, as amended; and (vi) All approvals, consents, authorization, elections and orders of or filings or registrations with any governmental authority, board, agency or commission having jurisdiction which would constitute a condition precedent to, or the absence of which would materially adversely affect, the ability of the Community Facilities District, to perform its obligations under the Bonds or the Community Facilities District Documents, have been obtained or made, as the case may be, and are in full force and effect. 7. The letter of Disclosure Counsel, dated the Closing Date and addressed to the Community Facilities District and to the Underwriter, to the effect that, without having undertaken to determine independently the accuracy or completeness of the statements contained in the Official Statement, but on the basis of their participation in conferences with representatives of the Community Facilities District, the Special Tax Consultant and others, and their examination of certain documents, nothing has come to their attention which has led them to believe that the Preliminary Official Statement as of its date and the date of this Purchase Agreement and the Official Statement as of its date and as of the Closing Date contained or contains any unt rue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading (except that no opinion or belief need be expressed as to any financial statements or other financial, statistical or engineering data or forecasts, numbers, charts, estimates, projections, assumptions, or expressions of opinion, any information about valuation, appraisals, absorption, archeological or environmental matters, or any information with respect to the City, or about DTC or the book-entry-only system); 8. A certificate dated the Closing Date and signed by an authorized representative of the Community Facilities District or an authorized de signee, on behalf of the Community Facilities District substantially in the form attached hereto as Exhibit F; 9. An opinion of the City Attorney of the City, dated the date of Closing and addressed to the Underwriter and the City, to the effect that: (i) The City is duly organized and validly existing as a municipal corporation and charter city under and by virtue of the Constitution and laws of the State; (ii) The Resolutions and Formation Documents were duly adopted Page 1019 of 1128 12 at meetings of the City Council, acting as legisla tive body of the Community Facilities District which were called and held under law and with all public notice required by law and at which a quorum was present and acting throughout, and the Resolutions and Formation Documents are in full force and effect and have not been amended or repealed; (iii) To their current actual knowledge, there is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, regulatory agency, public board or body is pending with respect to whic h the Community Facilities District has been served with process or threatened, in any way affecting the existence of the City, the Community Facilities District or the titles of the Community Facilities District’s officials to their respective offices, or seeking to restrain or to enjoin the issuance, sale or delivery of the Bonds or the application of the proceeds thereof in accordance with the Indenture, or the collection or application of the Special Taxes to pay the principal of and interest on the Bonds, or in any way contesting or affecting the validity or enforceability of the Bonds, the Community Facilities District Documents or any action of the Community Facilities District contemplated by any of said documents, or in any way contesting the completeness or accuracy of the Preliminary Official Statement or of the Official Statement or the powers of the Community Facilities District or its authority with respect to the Bonds, the Community Facilities District Documents or any action on the part of th e Community Facilities District contemplated by any of said documents, wherein an unfavorable decision, ruling, or finding could materially adversely affect the validity or enforceability of the Bonds or the Community Facilities District Documents; and (iv) To their current actual knowledge, the execution and delivery of the Bonds and the Community Facilities District Documents, and compliance with the provisions of each, will not conflict with or constitute a breach of or default under any loan agreement, note, ordinance, resolution, indenture, contract, agreement or other instrument of which the Community Facilities District is a party or is otherwise subject or bound, a consequence of which could be to materially and adversely affect the ability of the Communi ty Facilities District to perform its obligations under the Bonds or the Community Facilities District Documents. 10. A certificate dated the Closing Date from Willdan Financial Services (the “Special Tax Consultant” or the “Dissemination Agent”) addressed to the Community Facilities District and the Underwriter to the effect that: (i) the Special Tax if collected in the maximum amounts permitted pursuant to the Rate and Method of Apportionment of Special Taxes of the Community Facilities District as of the Closing Date would generate at least budgeted administrative expenses plus 110% of the annual debt service payable with respect to the Bonds and 2021 Bonds in each year, based on such assumptions and qualifications as shall be acceptable to the Underwriter; (ii) the statements in the Official Statement provided by the Special Tax Consultant concerning Special Taxes in the Community Facilities District and all information supplied by it for use in the Official Statement were as of the date of the Official State ment and are as of the Closing Date true and correct, and do not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, n ot misleading; (iii) the Dissemination Agent has the full power to enter into and deliver the Continuing Disclosure Agreement and to perform its duties as Dissemination Agent thereunder; (iv) as of the Closing Date, the Dissemination Agent has executed and delivered the Continuing Disclosure Agreement and, assuming due authorization, execution and delivery by the Community Facilities District, the Continuing Disclosure Agreement is a valid, legal and binding agreement of the Dissemination Agent, enforceable in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights in Page 1020 of 1128 13 general and by general equity principles (regardless of whether such enforcement is considered in a proceeding in equity or at law); and (v) to the best knowledge of the Dissemination Agent, after due inquiry, no consent, approval, authorization or other action by any governmental or regulatory authority having jurisdiction over the Dissemination Agent that has not been obtained by the Dissemination Agent is or will be required for the execution and delivery of the Continuing Disclosure Agreement or the performance by the Dissemination Agent of its duties and obligations the reunder; 11. Certified copies of the general resolution of the Trustee authorizing the execution and delivery of certain documents by certain officers of the Trustee, which resolution authorizes the execution of the Indenture and the Escrow Agreement and the a uthentication of the Bonds; 12. A certificate of the Trustee, addressed to the Underwriter, and the Community Facilities District dated the Closing Date, to the effect that: (i) the Trustee is authorized to carry out corporate trust powers, and have full power and authority to perform its duties under the Indenture; (ii) the Trustee is duly authorized to execute and deliver the Indenture, to accept the obligations created by the Indenture and to authenticate the Bonds pursuant to the terms of the Indenture; (iii) no consent, approval, authorization or other action by any governmental or regulatory authority having jurisdiction over the Trustee that has not been obtained is or will be required for the authentication of the Bonds or the consummation by the Trustee of the other transactions contemplated to be performed by the Trustee in connection with the authentication of the Bonds and the acceptance and performance of the obligations created by the Indenture; (iv) to the best of its knowledge, compliance with the terms of the Indenture will not conflict with, or result in a violation or breach of, or constitute a default under, any loan agreement, indenture, bond, note, resolution or any other agreement or instrument to which the Trustee is a party or by which it is bound, or any law or any rule, regulation, order or decree of any court or governmental agency or body having jurisdiction over the Trustee or any of its activities or properties; and (v) there is no action, suit, proceeding or investigation, at law or in equity, before or by any court or governmental agency, public board or body pending against the Trustee or threatened against the Trustee which in the reasonable judgment of the Trustee would affect the existence of the Trustee or in any way contest the validity or enforceability of the Indenture or contesting the powers of the Trustee or its authority to enter into and perform its obligations under the Indenture; 13. An opinion of counsel to the Trustee dated the Closing Date, addressed to the Underwriter, and the Community Facilities District to the effect that the Trustee is a national banking association duly organized and validly existing under the laws of the United States having full power and being qualified to enter into, accept and agree to the provisions of the Indenture, and that such documents have been duly authorized, executed and delivered by the Trustee, and, assuming due execution and delivery by the other parties thereto, constitutes the legal, valid and binding obligation of the Trustee, enforceable in accordance with its terms, subject to bankruptcy, insolvency, reorganization, moratorium and other laws affecting the enforcement of creditors’ rights in general and except as such enforceability may be limited by the application of equitable principles if equitable remedies are sought, and that the Bonds have been duly authenticated; 14. A certificate of the Community Facilities District dated the Closing Date, in a form acceptable to Bond Counsel, that the Bonds are not arbitrage bonds within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended; Page 1021 of 1128 14 15. A Letter of Representations of Developer in connection with the printing of the Preliminary Official Statement dated the date of the Preliminary Official Statement, substantially in the form attached as part of Exhibit D hereto or as such Letter of Representations may be modified with the approval of the Underwriter and Bond Counsel, and a Bring-Down Certificate of the Developer dated the Closing Date, substantially in the form attach ed as part of Exhibit E hereto; 16. A Letter of Representations of AG EHC II Toll CA 2 LP (“Toll”) in connection with the printing of the Preliminary Official Statement dated the date of the Preliminary Official Statement, substantially in the form attached as part of Exhibit D hereto or as such Letter of Representations may be modified with the approval of the Underwriter and Bond Counsel, and a Bring- Down Certificate of Toll dated the Closing Date, substantially in the form attached as part of Exhibit E hereto 17. The Continuing Disclosure Certificate of the Developer, substantially in the form attached as an appendix to the Official Statement; 18. The Continuing Disclosure Certificate of Toll, substantially in the form attached as an appendix to the Official Statement; 19. An opinion or opinions of counsel to the Developer, dated the date of the Closing addressed to the Community Facilities District and the Underwriter, in form and substance acceptable to the Underwriter and Bond Counsel; 20. An opinion or opinions of counsel to Toll, dated the date of the Closing addressed to the Community Facilities District and the Underwriter, in form and substance acceptable to the Underwriter and Bond Counsel; 21. An opinion of Kutak Rock LLP, counsel to the Underwriter (“Underwriter’s Counsel”), dated the date of Closing and addressed to the Underwriter in form and substance acceptable to the Underwriter; 22. [Parity Certificate and/or Opinion regarding 2021 Bonds] 23. A certificate in form and substance as set forth in Exhibit C hereto of Capital Realty Analysts, La Quinta, California, the appraiser of the property within the Community Facilities District, dated as of the Closing Date; and 24. Such additional legal opinions, certificates, instruments and other documents as the Underwriter and Bond Counsel may reasonably request to evidence the truth and accuracy, as of the date hereof and as of the Closing Date, of the material representations and warranties of the Community Facilities District contained herein, and of the statements and information con tained in the Official Statement and the due performance or satisfaction by the Community Facilities District at or prior to the Closing of all agreements then to be performed and all conditions then to be satisfied by the Community Facilities District in connection with the transactions contemplated hereby and by the Indenture and the Official Statement. If the Community Facilities District shall be unable to satisfy the conditions to the obligations of the Underwriter to purchase, accept delivery of and pay for the Bonds contained in this Purchase Agreement, or if the obligations of the Underwriter to purchase, accept delivery of and pay for the Page 1022 of 1128 15 Bonds shall be terminated for any reason permitted by this Purchase Agreement, this Purchase Agreement shall terminate and neither the Community Facilities District nor the Underwriter shall be under any further obligation hereunder, except that the respective obligations of the Underwriter and the Community Facilities District set forth in Section 5 hereof shall continue in full force and effect. 4. Establishment of Issue Price. (a) The Underwriter agrees to assist the Community Facilities District in establishing the issue price of the Bonds and shall execute and deliver to the Community Facilities District at Closing an “issue price” or similar certificate, together with the supporting pricing wires or equivalent communications, substantially in the form attached hereto as Exhibit B, with such modifications as may be appropriate or necessary, in the reasonable judgment of the Underwriter, the Community Facilities District and Bond Counsel, to accurately reflect, as applicable, the sales price or prices or the initial offering price or prices to the public of the Bonds. (b) Except as otherwise set forth in Exhibit A attached h ereto, the Community Facilities District will treat the first price at which 10% of each maturity of the Bonds (the “10% test”), identified under the column “10% Test Satisfied” in Exhibit A, is sold to the public as the issue price of that maturity (if different interest rates apply within a maturity, each separate CUSIP number within that maturity will be subject to the 10% test). At or promptly after the execution of this Purchase Agreement, the Underwriter shall report to the Community Facilities Distr ict the price or prices at which it has sold to the public each maturity of Bonds. If at that time the 10% test has not been satisfied as to any maturity of the Bonds, the Underwriter agrees to promptly report to the Community Facilities District the prices at which it sells the unsold Bonds of that maturity to the public. That reporting obligation shall continue, whether or not the Closing Date has occurred, until the 10% test has been satisfied as to the Bonds of that maturity or until all Bonds of that maturity have been sold to the public, provided that, the Underwriter’s reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon request of the Community Facilities District or Bond Counsel. (c) The Underwriter confirms that it has offered the Bonds to the public on or before the date of this Purchase Agreement at the offering price or prices (the “initial offering price”), or at the corresponding yield or yields, set forth in Exhibit A attached hereto, except as otherwise set forth therein. Exhibit A also sets forth, identified under the column “Hold the Offering Price Rule Used,” as of the date of this Purchase Agreement, the maturities, if any, of the Bonds for which the Underwriter represents that (i) the 10% test has been satisfied (assuming orders are confirmed by the close of the business day immediately following the date of this Purchase Agreement) and (ii) the 10% test has not been satisfied and for which the Community Facilities District and the Underwr iter agree that the restrictions set forth in the next sentence shall apply, which will allow the Community Facilities District to treat the initial offering price to the public of each such maturity as of the sale date as the issue price of that maturity (the “hold-the-offering-price rule”). So long as the hold-the-offering- price rule remains applicable to any maturity of the Bonds, the Underwriter will neither offer nor sell unsold Bonds of that maturity to any person at a price that is higher than the i nitial offering price to the public during the period starting on the sale date and ending on the earlier of the following: 1. the close of the fifth (5th) business day after the sale date; or 2. the date on which the Underwriter has sold at least 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public. Page 1023 of 1128 16 The Underwriter shall promptly advise the Community Facilities District when it has sold 10% of that maturity of the Bonds to the public at a p rice that is no higher than the initial offering price to the public, if that occurs prior to the close of the fifth (5th) business day after the sale date. (d) The Underwriter confirms that: (i) any selling group agreement and any third-party distribution agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each dealer who is a member of the selling group and each broker- dealer that is a party to such third-party distribution agreement, as applicable: (A)(i) to report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it, whether or not the Closing Date has occu rred, until either all Bonds of that maturity allocated to it have been sold or it is notified by the Underwriter that the 10% test has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the Closing Date may be reasonable periodic intervals or otherwise upon request of the Underwriter and (ii) to comply with the hold-the-offering-price rule, if applicable, if and for so long as directed by the Underwriter, (B) to promptly notify the Underwriter of any sales of Bonds that, to its knowledge, are made to a purchaser who is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below), and (C) to acknowledge that, unless otherwise advised b y the dealer or broker- dealer, the Underwriter shall assume that each order submitted by the dealer or broker -dealer is a sale to the public. (ii) any selling group agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each dealer that is a party to a third-party distribution agreement to be employed in connection with the initial sale of the Bonds to the public to require each broker -dealer that is a party to such third-party distribution agreement to (A) report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it, whether or not the Closing Date has occurred, until either all Bonds of that maturity allocated to it have bee n sold or it is notified by the Underwriter or the dealer that the 10% test has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon reques t of the Underwriter or the dealer, and (B) comply with the hold-the-offering-price rule, if applicable, if and for so long as directed by the Underwriter or the dealer and as set forth in the related pricing wires. (e) The Community Facilities District acknowledges that, in making the representation set forth in this section, the Underwriter will rely on (i) in the event a selling group has been created in connection with the initial sale of the Bonds to the public, the agreement of each dealer who is a member of the selling group to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds, as set forth in a selling group a greement and the related pricing wires, and (ii) in the event that a third-party distribution agreement was employed in connection with the initial sale of the Bonds to the public, the agreement of each broker -dealer that is a party to such agreement to comply with the requirements for establishing issue price of the Bonds, including, but not limited Page 1024 of 1128 17 to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds, as set forth in the third-party distribution agreement and the related pricing wires. (f) The Underwriter acknowledges that sales of any Bonds to any person that is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below) shall not constitute sales to the public for purposes of this section. Further, for purposes of this section: (i) “public” means any person other than an underwriter or a related party; (ii) “underwriter” means (A) any person that agrees pursuant to a written contract with the Community Facilities District (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the public and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) to participate in the initial sale of the Bonds to the public (including a member of a selling group or a party to a third- party distribution agreement participating in the initial sale of the Bonds to the public); (iii) a purchaser of any of the Bonds is a “related party” to an underwriter if the underwriter and the purchaser are subject, directly or indirectly, to (A) more than 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (B) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (C) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other); and (iv) “sale date” means the date of execution of this Purchase Agreement by all parties. 5. Expenses. Whether or not the transactions contemplated by this Purchase Agreement are consummated, the Underwriter shall be under no obligation to pay, and the Community Facilities District shall pay all expenses and costs of the Community Facilities District incident to the performance of its obligations in connection with the authorization, execution, sal e and delivery of the Bonds to the Underwriter, including, without limitation, printing costs, initial fees of the Trustee and Escrow Agent, including fees and disbursements of their counsel, if any, fees and disbursements of Bond Counsel, Disclosure Counsel and other professional advisors employed by the City, costs of preparation, printing, signing, transportation, delivery and safekeeping of the Bonds. The Underwriter shall pay all out-of-pocket expenses of the Underwriter, including, without limitation, advertising expenses, the California Debt and Investment Advisory Commission fee, CUSIP Services Bureau charges, regulatory fees imposed on new securities issuers and any and all other expenses incurred by the Underwriter in connection with the public offering and distribution of the Bonds, including fees and disbursements of Underwriter’s Counsel. Any meals in connection with or adjacent to meetings, rating agency presentations, pricing activities or other transaction -related activities shall be considered an expense of the transaction and included in the expense component of the Underwriter’s discount. 6. Notices. Any notice of other communication to be given to the Community Facilities District under this Purchase Agreement may be given by delivering the same in writing to the City of Palm Desert, 73510 Fred Waring Drive, Palm Desert, CA 92260, Attention: City Manager; any notice Page 1025 of 1128 18 or other communication to be given to the Underwriter under this Purchase Agreement may be given by delivering the same in writing to Piper Sandler & Co., 120 Vantis Drive, Suite 330, Aliso Viejo, California 92656, Attention: Public Finance. 7. Parties In Interest. This Purchase Agreement is made solely for the benefit of the Community Facilities District and Underwriter (including a ny successors or assignees of the Underwriter) and no other person shall acquire or have any right hereunder or by virtue hereof. 8. Survival of Representations and Warranties. The representations and warranties of the Community Facilities District under thi s Purchase Agreement shall remain operative and in full force and effect, regardless of any investigations made by or on behalf of the Underwriter and shall survive the delivery and payment for the Bonds and the Closing. 9. Execution in Counterparts. This Purchase Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument. 10. Effective. This Purchase Agreement shall become effective and binding upon the respective parties hereto upon the execution of the acceptance hereof by the Community Facilities District and shall be valid and enforceable as of the time of such acceptance. 11. No Prior Agreements. This Purchase Agreement supersedes and replaces all prior negotiations, agreements and understanding among the parties hereto in relation to the sale of the Bonds by the Community Facilities District. 12. Governing Law. This Purchase Agreement shall be governed by the laws of the State of California. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; EXECUTION PAGE FOLLOWS] Page 1026 of 1128 13. Effective Date. This Purchase Agreement shall become effective and binding upon the respective parties hereto upon the execution of the acceptance hereof by the Community Facilities District and shall be valid and enforceable as of the time of such acceptance. Very truly yours, PIPER SANDLER & CO., as Underwriter By: Authorized Officer The foregoing is hereby agreed to and accepted as of the date first above written: CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) By: Authorized Officer Time of Execution: _____________ p.m. California time [EXECUTION PAGE OF BOND PURCHASE AGREEMENT] Page 1027 of 1128 EXHIBIT A $______ CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) SPECIAL TAX BONDS, SERIES 2024 Maturity (September 1) Principal Amount Interest Rate Yield Price 10% Test Satisfied* 10% Test Not Satisfied Subject to Hold-The- Offering- Price Rule 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 20__(T) 20__(T) 20__(T) 20__(T) _________________ (T) Term Bond. (C) Priced to optional call at [par] on September 1, 20___. *At the time of execution of this Purchase Agreement and assuming orders are confirmed by the close of the business day immediately following the date of this Purchase Agreement. Page 1028 of 1128 EXHIBIT B $_______ CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) SPECIAL TAX BONDS, SERIES 2024 FORM OF ISSUE PRICE CERTIFICATE The undersigned, as underwriter of the above-referenced bonds (the “Bonds”) pursuant to that certain Bond Purchase Agreement, dated [BPA Date], by and between Community Facilities District No. 2021-1 (University Park) (the “Issuer”) and the undersigned, acting through its authorized representative, hereby certifies as set forth below with respect to the sale and issuance of the Bonds. 1. Sale of the Bonds. As of the date of this certificate, at least 10% of each Maturity of the Bonds was sold to the Public at the respective price (“Sale Price”) listed in Schedule A. 2. The aggregate of the Sale Prices of the Bonds is $________ (the “Issue Price”). 3. Based upon our experience in marketing and maintaining a market for obligations having terms and credit arrangements similar to those underlying the Bonds, the Reserve Requirement contemplated under the Bond Indenture, dated as of July 1, 2021, as supplemented by the First Supplemental Indenture, dated as of [March 1, 2024], by and between the Issue r and U.S. Bank Trust Company, National Association, as trustee, pursuant to which the Bonds are being issued, was a vital and necessary factor in marketing the Bonds to the public and is both reasonably required and necessary to the maintenance of an orderly market for the Bonds. 4. The weighted average maturity of the Bonds is _____ years. 5. The Yield on the Bonds is _______%, being the discount rate which, when used in computing the present worth of all payments of principal and interest to be paid on t he Bonds, computed on the basis of a 360-day year and semi-annual compounding produces an amount equal to the Issue Price of the Bonds[, computed with the following adjustment. The Bonds maturing (i) on September 1, 20__, and (ii) on September 1, 20__ are the only Bonds that are subject to optional redemption before maturity and have an Initial Offering Price that exceeds their stated redemption price at maturity by more than one-fourth of one percent multiplied by the product of their stated redemption price at maturity and the number of complete years to their first optional redemption date. Accordingly, in computing the Yield on the Bonds, such Bonds were treated as retired on their optional redemption date or at maturity to result in the lowest Yield on the Bonds.]. 7. [None of the Bonds subject to mandatory early redemption has a stated redemption price that exceeds the initial offering price of such bond by more than one -fourth of one percent multiplied by the product of its stated redemption price at maturity and the number of years to its weighted average maturity date.] 8. [None of the Bonds is subject to optional redemption within five years of the Issue Date of the Bonds, and none of the Bonds subject to optional redemption has an initial offering price that exceeds its stated redemption price at maturity by more than one -fourth of one percent multiplied Page 1029 of 1128 B-22 by the product of its stated redemption price at maturity and the number of complete years to its first optional redemption date.] 9. Defined Terms. (a) Issuer means City of Palm Desert Community Facilities District No. 2021 -1 (University Park). (b) Maturity means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate Maturities. (c) Public means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter. The term “related party” for purposes of this certificate generally means any two or more persons who have greater than 50 percent common ownership, directly or indirectly. (d) Underwriter means (i) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public). Other capitalized terms used but not defined herein shall have the respective meanings ascribed to such terms in the Certificate Regarding Compliance with Certain Tax Matters (the “Tax Certificate”) executed by the Issuer and the City of Palm Desert (the “City”) with respect to the Bonds. The representations set forth in this Certificate are limited to factual matters only. Nothing in this Certificate represents the undersigned’s interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing information will be relied upon by the Issuer and the City with respect to certain of the representations set forth in the Tax Certificate relating to the Bonds and with respect to compliance with the federal income tax rules affecting the Bonds, and by Richards, Watson & Gershon, A Professional Corporation, in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal Revenue Service Form 8038 -G, and other federal income tax advice that it may give to the Issuer and the City from time to time relating to the Bonds. IN WITNESS WHEREOF, the undersigned has caused this Certificate to be executed on the date first written above. Page 1030 of 1128 B-23 PIPER SANDLER & CO. By:_______________________________________ Name:_____________________________________ Title:______________________________________ Page 1031 of 1128 EXHIBIT C CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) SPECIAL TAX BONDS, SERIES 20244 CERTIFICATE OF APPRAISER The undersigned hereby states and certifies: 1. That he or she is an authorized principal of Capital Realty Analysts, La Quinta, California (the “Appraiser”) and as such is familiar with the facts herein certified and is authorized and qualified to certify the same. 2. That the Appraiser has prepared an appraisal report dated December 20, 2023, with a date of value as of December 15, 2023 (the “Appraisal Report”), on behalf the City of Palm Desert Community Facilities District No. 2021-1 (University Park) (the “Community Facilities District”) and in connection with the Official Statement dated [BPA Date] (“Official Statement”), concerning the City of Palm Desert Community Facilities District No. 2021 -1 (University Park) Special Tax Bonds, Series 2024 (the “Bonds”). 3. That the Appraiser hereby consents to the reproduction and use of the Appraisal Report appended to the Preliminary Official Statement and the Official Statement. The Appraiser also consents to the references to the Appraiser and the Appraisal made in the Preliminary Official Statement and the Official Statement. 4. In the opinion of the Appraiser the assumptions made in the Appraisal Report are reasonable. 5. That the Official Statement has been reviewed on behalf of the Appraiser and to the best knowledge of the Appraiser the statements concerning the Appraisal Report and the value of the property contained under the captions “INTRODUCTION – Appraisal Report,” “THE DISTRICT – Appraisal Report,” and “APPENDIX C – APPRAISAL REPORT” are true, correct and complete in all material respects and do not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. 6. Each of the parcels appraised by the Appraiser is encompassed within the Community Facilities District as set forth in the boundary map of the Community Facilities District and the Appraisal Report fairly and accurately described, as of the stated date of value, the market values of the properties in the Community Facilities District that are subject to the special taxes. 7. That, as of the date of the Official Statement and as of the date hereof, the Appraisal Report appended to the Official Statement, to the best of my knowledge and belief, and subject to all of the Limiting Conditions and Major Assumptions set forth in the Appraisal Report, does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein, in the light of the circumstances un der which they were made, not Page 1032 of 1128 C-25 misleading, and no events or occurrences have been ascertained by us or have come to our attention that would materially and adversely affect the conclusions as to the market value of the appraised property stated in the Appraisal Report. However, we have not performed any procedures since the date of the Appraisal Report to obtain knowledge of such events or occurrences nor are we obligated to do so in the future. 8. The Appraisal Report complies with the Appraisal Standards for Land-Secured Financings issued by the California Debt and Investment Advisory Commission dated July, 2004. The Community Facilities District and Piper Sandler & Co., as underwriter, are entitled to rely on the Certificate. Dated: [Closing Date] CAPITAL REALTY ANALYSTS By: Page 1033 of 1128 EXHIBIT D FORM OF LETTER OF REPRESENTATIONS CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) SPECIAL TAX BONDS, SERIES 2024 LETTER OF REPRESENTATIONS OF [UNIVERSITY PARK INVESTOR, LLC] [AG EHC II TOLL CA 2 LP] [POS Date] City of Palm Desert Community Facilities District No. 2021-1 (University Park) 73510 Fred Waring Drive Palm Desert, CA 92260 Piper Sandler & Co. 120 Vantis Drive, Suite 330 Aliso Viejo, CA 92656 Ladies and Gentlemen: Reference is made to the City of Palm Desert Community Facilities District No. 2021 -1 (University Park) Special Tax Bonds, Series 2024 (the “Bonds”) and to the Bond Purchase Agreement to be entered into in connection therewith (the “Purchase Agreement”). This Letter of Representations of [University Park Investor, LLC] [AG EHC II Toll CA 2 LP] (the “Letter of Representations”) is delivered pursuant to and in satisfaction of Section 3(E)(15) of the Purchase Agreement. Capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Purchase Agreement. The undersigned certifies and represents that he is duly authorized on behalf of [University Park Investor, LLC, a Delaware limited liability company] [AG EHC II Toll CA 2 LP, a California limited partnership] (the “Developer”), to execute and deliver this Letter of Representations in connection with the issuance, sale and delivery by the City of Palm Desert Community Facilities District No. 2021-1 (University Park) (the “Community Facilities District”) of the Bonds. The Bonds are described in the Preliminary Official Statement dated [POS Date] relating to the Bonds (the “Preliminary Official Statement”). Except as otherwise described in the Preliminary Official Statement, the Developer’s current expectations are that the Developer shall remain the party responsible for the construction of the Page 1034 of 1128 D-27 horizontal infrastructure within the Property. Except as disclosed in the Preliminary Official Statement, the Developer has not entered into an agreement for development or management of the Property by any other entity, except such subcontracts, consultant agreements and similar agreements for land development activities associated with the Developer’s development plan as are entered into in the ordinary course of business. As used in this Letter of Representations, the term “Actual Knowledge of the Undersigned” means the actual knowledge that the undersigned currently has as of the date of this Letter of Representations or has obtained through (i) interviews with such officers and responsible employees of the Developer as the undersigned has reasonably determined are likely, in the ordinary course of his or her respective duties, to have knowledge of the matters set forth in this Letter of Representations, and (ii) reviews of documents reasonably available to the undersigned and which the undersigned reasonably deemed necessary for the undersigned to execute this Letter of Representations. The undersigned has not conducted any extraordinary inspection or inquiry other than such inspections or inquiries as are prudent and customary in connection with the ordinary course of the Devel oper’s current business and operations. The undersigned has not contacted any individuals who are no longer employed by, or associated with, the Developer. As used in this Letter of Representations, the term “Relevant Entity” of the Developer means any entity presently directly or indirectly through one or more intermediaries controlling, controlled by or under common control with the Developer, and about whom information could be material to potential investors in their investment decision regarding the Bonds (including without limitation information relevant to the proposed development of the property owned by the Developer in the Community Facilities District, or to the Developer’s ability to pay the special taxes levied by the Community Facilities District on property owned by the Developer (“Special Taxes”) prior to delinquency). As used in this Letter of Representations, the term “Property” means the property currently owned by the Developer within the Community Faciliti es District as described in the Preliminary Official Statement. The undersigned certifies that he or she is familiar with the facts set forth in this Letter of Representations, and further hereby certifies to the Actual Knowledge of the Undersigned as fol lows on behalf of the Developer: (1) The Developer has been duly organized in the [State of Delaware and validly exists in good standing under the laws of the State of California] [State of California] and has or will have prior to the Closing, as required, all requisite corporate right, power and authority: (i) to execute and deliver this Letter of Representations and [to execute and deliver the Acquisition Agreement and the CVWD JCFA], and, at Closing, the Continuing Disclosure Agreement of the Developer substantially in the form attached as Appendix F to the Preliminary Official Statement, with such additional changes as may be agreed to by the Developer (the “Developer Continuing Disclosure Agreement”), (ii) to own, develop and sell the Property, as descr ibed in the Preliminary Official Statement, Page 1035 of 1128 D-28 (iii) to carry on its business as described in the Preliminary Official Statement, and (iv) to perform its obligations under [the Acquisition Agreement, the CVWD JCFA], and the Developer Continuing Disclosure Agreement. (2) The Developer agrees to execute at Closing the Developer Continuing Disclosure Agreement. (3) Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned, the Developer is not aware of any material failures by it to comply in all material respects with previous continuing disclosure undertakings in a written certificate or agreement executed by it to provide periodic continuing disclosure reports or notices of material events respecting securities offerings in California during Developer's period of ownership of the Property. (4) To the Actual Knowledge of the Undersigned, the execution and delivery of [the Acquisition Agreement, the CVWD JCFA], or the Developer Continuing Disclosure Agreement, and the performance by the Developer of its obligations under [the Acquisition Agreement, the CVWD JCFA], or the Developer Continuing Disclosure Agreement, will not conflict with or constitute a breach of or default under any loans, lines of credit, agreements, or other contractual or financial obligations of the Developer, or any applicable law, regulation, judgment or decree. (5) To the Actual Knowledge of the Undersigned, neither the Developer nor any of its Relevant Entities is currently in material default on any loans, lines of credit, agreements, or other contractual or financial obligations, or in breach of any applicable law, regulation, judgment or decree, and no event has occurred and is continuing that would constitute such a default or breach, the result of which could materially adversely affect the ability of the Developer: (i) to own, develop and sell the Property, as described in the Preliminary Official Statement, (ii) to pay Special Taxes on the Property (to the extent the responsibility of the Developer) prior to delinquency, (iii) to carry on its business as described in the Preliminary Official Statement, or (iv) to perform its obligations under [the Acquisition Agreement, the CVWD JCFA], or the Developer Continuing Disclosure Agreement. (6) Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned, the Developer has not assumed any obligations under any loans, lines of credit, agreements, or other contractual or financial arrangements, or any applicable judgment or decree, which could materially adversely affect the ability of the Developer: (i) to own, develop and sell the Property, as described in the Preliminary Official Statement, Page 1036 of 1128 D-29 (ii) to pay Special Taxes on the Property (to the extent the responsibility of the Developer) prior to delinquency, (iii) to carry on its business as described in the Preliminary Official Statement, or (iv) to perform its obligations under [the Acquisition Agreement, the CVWD JCFA], or the Developer Continuing Disclosure Agreement. (7) Except as described in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned, the Developer has no loans outstanding and unpaid and no lines of credit that are secured by the Property. (8) To the Actual Knowledge of the Undersigned, the Developer is able to pay its bills as they become due and no legal proceedings are pending against the Developer (with proper service of process having been accomplished) or, to the Actual Knowledge of the Undersigned, threatened in writing in which the Developer may be adjudicated as bankrupt or discharged from any and all of its debts or obligations, or granted an extension of time to pay its debts or obligations, or be allowed to reorganize or readjust its debts, or be subject to control or supervision of the Federal Deposit Insurance Corporation (9) To the Actual Knowledge of the Undersigned, the Developer is able to pay its bills as they become due and no legal proceedings are pending against the Developer (with proper service of process having been accomplished) or to the Actual Knowledge of the Undersigned, threatened in writing in which the Developer may be adjudicated as bankrupt or discharged from any or all of their debts or obligations, or granted an extension of time to pay their debt or obligations, or be allowed to reorganize or readjust their debts or obligations, or be subject to control or supervision of the Federal Deposit Insurance Corporation which could have a materially adverse impact on the ability of the Developer to develop its Property as described in the Preliminary Official Statement, or to pay the Special Taxes or ad valorem tax obligations with respect to the portion of the Property then owned by the De veloper (to the extent the responsibility of the Developer) prior to delinquency. (10) The Developer is not currently in default in, or, during its period of ownership of the Property, has ever defaulted to any material extent in, the payment of special taxes o r assessments in connection with the Community Facilities District or any other community facilities districts or assessment districts in California that was not cured prior to the institution of any enforcement action with a court of law. (11) Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned, there is no litigation, inquiry, investigation or administrative proceeding of any nature pending against the Developer (with service of process to the Developer having been accomplished), or to the Actual Knowledge of the Undersigned, overtly threatened in writing against the Developer, or to the Actual Knowledge of the Undersigned, pending or overtly threatened in writing against any Relevant Entity of the Developer, i n each case which, if successful, could: (i) materially adversely affect the ability of the Developer to own, develop and sell the Property, as described in the Preliminary Official Statement, (ii) materially adversely affect the ability of the Developer to pay Special Taxes on the Property (to the extent the responsibility of the Developer) prior to delinquency, Page 1037 of 1128 D-30 (iii) materially adversely affect the ability of the Developer to carry on its business as described in the Preliminary Official Statement, (iv) materially adversely affect the ability of the Developer to perform its obligations under [the Acquisition Agreement, the CVWD JCFA], or the Developer Continuing Disclosure Agreement, (v) challenge, question the validity or enforceability of, or restr ain or enjoin the performance of, the Special Taxes, the Bonds, the Community Facilities District Resolution of Issuance, the Indenture, the Developer Continuing Disclosure Agreement or the Bond Purchase Agreement, or (vi) restrain or enjoin collection of Special Taxes or other sums to be pledged to pay the principal of and interest on the Bonds. (12) Except as disclosed in the Preliminary Official Statement: (i) to the Actual Knowledge of the Undersigned, the Developer and its Relevant Entities are solvent; (ii) except as set forth in this paragraph, neither the Developer nor, to the Actual Knowledge of the Undersigned, any of its Relevant Entities, has filed for bankruptcy or been declared bankrupt in the last 10 years; and (iii) to the Actual Knowledge of the Undersigned, there are no proceedings pending (with service of process to the Developer having been accomplished) or overtly threatened in writing in which the Developer or any of its Relevant Entities may be adjudicated as bankrupt, become the debtor in a bankruptcy proceeding, be discharged from any or all of its respective debts or obligations, be granted an extension of time to pay its respective debts or obligations, or be granted a reorganization or readjustment of its respective debts or obligations. (13) As of the date hereof, the information in the sections of the Preliminary Official Statement entitled “INTRODUCTION – The District” (paragraphs four and five only) [“PROPERTY OWNERSHIP AND THE DEVELOPMENT” and “CONTINUING DISCLOSURE” (paragraph three only)] [“PROPERTY OWNERSHIP AND THE DEVELOPMENT” and “CONTINUING DISCLOSURE” (paragraph three only)] concerning the Developer and its Relevant Entities, the Property, the Developer’s development and financing plans, and the Developer’s contractual arrangements (but, under all captions, excluding any information cited as coming from a source other than the Developer, and excluding any information regarding any appraisal, any absorption study, and market value ratio and annual special tax ratio, and except that no belief or view is expressed as to (a) any financial statements and other financial, statistical, economic, demographic, or engineering data or forecasts, numbers, charts, tables, graphs, estimates, projections, assumptions, or expressions of opinion, or (b) any information about valuation, appraisals, market absorption, archaeological, or environmental matters) is true and correct in all material respects, and contains no untrue statement of a material fact and does not omit any material fact necess ary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. Page 1038 of 1128 D-31 (14) Except as disclosed in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned, the Developer has not submitted an application for, nor received actual notice of, (i) the formation or authorization of any other assessment district o r community facilities district that would include any portion of the property within the Community Facilities District, or (ii) the authorization or issuance of any debt secured by an assessment or another special tax to be levied on any portion of the property within the Community Facilities District, other than the Special Tax. (15) Except as set forth in the Preliminary Official Statement, to the Actual Knowledge of the Undersigned, there are no claims, disputes, lawsuits, actions or contingent liabilities of or against the Developer or its Relevant Entities, or among, by or between the Developer and any contractors working on the development of the Property in the Community Facilities District, which may materially and adversely affect: (i) the ability of the Developer to own, develop and sell the Property, as described in the Preliminary Official Statement, (ii) the ability of the Developer to pay Special Taxes on the Property (to the extent the responsibility of the Developer) prior to delinquency, (iii) the ability of the Developer to carry on its business as described in the Preliminary Official Statement, or (iv) the ability of the Developer to perform its obligations under [the Acquisition Agreement, the CVWD JCFA], or the Developer Continuing Disc losure Agreement. (16) The Developer covenants that, while the Bonds or any refunding obligations related thereto are outstanding, the Developer and the Relevant Entities which it controls will not bring any action, suit, proceeding, inquiry or investigation at law or in equity, before any court, regulatory agency, public board or body, that in any way: (i) seeks to challenge or overturn the formation of the Community Facilities District, (ii) seeks to challenge the adoption of the ordinance levying Special Ta xes within the Community Facilities District, (iii) seeks to invalidate the Community Facilities District or any of the Bonds or any refunding obligations, or (iv) seeks to invalidate the special tax liens imposed under Section 3115.5 of the Streets and Highways Code based on recordation of the notices of special tax lien relating thereto. Page 1039 of 1128 D-32 The foregoing covenant shall not prevent the Developer in any way from bringing any other action, suit, proceeding, inquiry or investigation at law or in equity before any court, regulatory agency, public board or body relating to the following: (a) a claim that the Special Tax has not been levied in accordance with the Rate and Method of Apportionment, (b) the application or use of the Special Taxes levied and collec ted, or (c) the enforcement of the obligations of the Community Facilities District under the Indenture or any agreements between the Developer or a Relevant Entity and the City or the Community Facilities District or under which the Developer or Relevant Entity is a party or beneficiary. (17) The Developer has received a copy of the Rate and Method of Apportionment containing the prepayment formula. The Developer acknowledges that any prepayment of the Special Taxes may only be made in accordance with the Rate and Method of Apportionment. (18) The Developer shall comply with the provision of the Mello-Roos Community Facilities Act of 1982, as amended, relating to the Notice of Special Tax described in California Government Code Section 53341.5 in connection with the sale of any part of the Property. (19) Based upon its current development plans, including, without limitation, its current budget and subject to economic conditions and risks generally inherent in the development of real property, to the Actual Knowledge of the Undersigned, the Developer anticipates that it will have sufficient funds to (i) carry on its business as described in the Preliminary Official Statement, (ii) own, develop and sell the Property as described in the Preliminary Official Statement, and (iii) pay Special Taxes on the Property (to the extent the responsibility of the Developer) prior to delinquency and does not anticipate that the City or the Community Facilities District will be required to resort to a draw on the Reserve Fund for payment of principal of or interest on the Bonds due to the Developer’s nonpayment of Special Taxes. However, no assurance can be given that sources of financing available to the Developer will be sufficient to complete the property development and home constr uction as currently anticipated and as described in the Preliminary Official Statement. While the Developer has made such internal financing available in the past, there can be no assurance whatsoever of its willingness or ability to do so in the future. Neither the Developer nor any of its Relevant Entities has any legal obligation of any kind to make any such funds available or to obtain loans. Other than pointing out the willingness of the Developer to provide internal financing in the past, the Developer has not represented in any way that it will do so in the future. If and to the extent that internal financing and home sales revenues are inadequate to pay the costs to complete the Developer’s planned development in the Community Facilities District and other financing by the Developer is not put into place, there could be a shortfall in the funds required to complete the proposed development by the Developer and portions of the Property may not be developed. (20) The Developer consents to the issuance of the Bonds. The Developer acknowledges and agrees that the proceeds of such Bonds will be used for the acquisition and construction of the improvements described in the Preliminary Official Statement. The Developer acknowledges that the costs to acquire and construct such improvements are Page 1040 of 1128 D-33 estimates, and that any increase in costs in excess of the estimated costs relating to improvements will reduce the improvements which may be financed by the Community Facilities District, and neither the City nor the Community Facilities District has any obligation to provide moneys to pay for any such costs. (21) During the period between the date of this Letter of Representations and the Closing Date, if the Developer has actual knowledge of any event relating to or affecti ng the Developer and its Relevant Entities, the Property, the Developer’s development and financing plans, and the Developer’s contractual arrangements (but excluding any information cited as coming from a source other than the Developer) which could cause the information under the captions of the Preliminary Official Statement indicated in Section 13 of this Letter of Representations (and subject to the limitations and exclusions contained in Section 13 of this Letter of Representations) to contain an untrue statement of a material fact or to omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, the Developer shall notify the City, the Community Facilities District and the Underwriter and if, in the opinion of counsel to the City or the Underwriter, such event requires the preparation and publication of a supplement or amendment to the Preliminary Official Statement, the Developer shall reasonably cooperate with the Community Facilities District in the preparation of an amendment or supplement to the Preliminary Official Statement in form and substance satisfactory to counsel to the City, the Community Facilities District and to the Underwriter. (22) As a condition to the issuance of the Bonds, the Developer agrees to deliver a bring-down certificate, dated the Closing Date, in substantially the form attached as Exhibit E to the Purchase Agreement, to affirm and restate the Developer’s certifications, representations and covenants made in this Letter of Representations. If any event related to or affecting the Developer, its Relevant Entities or the ownership, development or sale of the Property occurs, as a result of which it is necessary to modify the bring -down certificate, the Developer agrees to deliver a new bring-down certificate revised to reflect such event. (23) The Developer acknowledges and agrees that: (i) in connection with the purchase and sale of the Bonds under the Purchase Agreement, and with the discussions, undertakings and procedures leading up to the consummation of the purchase and sale of the Bonds under the Purchase Agreement, the Underwriter is and has been acting solely as principal and is not acting as the agent or fiduciary of the Developer, (ii) the Underwriter has not assumed a fiduciary responsibility in favor of the Developer with respect to (a) the offering of the Bonds contemplated hereby or the process leading thereto (whether or not the Underwriter, or any affiliate of the Underwriter, has advised or is currently advising the Developer on other matters), or (b) any other obligation to the Developer with respect to the offering contemplated by the Purchase Agreement, and (iii) the Developer has consulted its own legal, financial and other ad visors to the extent it has deemed appropriate in connection with the offering contemplated by the Purchase Agreement. On behalf of the Developer, the undersigned has reviewed the contents of this Letter of Representations and the Developer has consulted with counsel regarding the meaning of its contents. The Developer acknowledges and understands that a variety of state and federal laws, including but Page 1041 of 1128 D-34 not limited to the Securities Act of 1933, as amended, and Rule 10b-5 promulgated under the Securities Exchange Act of 1934, as amended, may apply to the Developer, and that under some circumstances certification as to the matters set forth in this Letter of Representations, without additional disclosures or other action, may not fully discharge all duties and obligations of the Developer under such laws. Page 1042 of 1128 D-35 The undersigned has executed this Letter of Representations solely in his or her capacity as an authorized representative of Developer and he or she will have no personal liability arising from or relating to this Letter of Representations. Any liability arising from or relating to this Letter of Representations may only be asserted against the Developer. [UNIVERSITY PARK INVESTOR, LLC, a Delaware limited liability company] [AG EHC II Toll CA 2 LP, a California limited partnership] By: Name: Title: [EXECUTION PAGE OF LETTER OF REPRESENTATIONS – [UNIVERSITY PARK INVESTOR, LLC] [AG EHC II TOLL CA 2 LP]] Page 1043 of 1128 EXHIBIT E FORM OF BRING-DOWN CERTIFICATE $____ CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) SPECIAL TAX BONDS, SERIES 2024 BRING-DOWN CERTIFICATE OF [UNIVERSITY PARK INVESTOR, LLC] [AG EHC II TOLL CA 2 LP] The undersigned certifies and represents that he or she is duly authorized on behalf of [University Park Investor, LLC, a Delaware limited liability company] [AG EHC II Toll CA 2 LP, a California limited partnership] (the “Developer”), to execute and deliver this Bring-Down Certificate of [University Park Investor, LLC] [AG EHC II Toll CA 2 LP] (this “Bring-Down Certificate”) in connection with the issuance, sale and delivery by the City of Palm Desert Community Facilities District No. 2021-1 (University Park) (the “Community Facilities District”) of the bonds captioned above (the “Bonds”). This Bring-Down Certificate is delivered pursuant to the Bond Purchase Agreement with respect to the Bonds dated [BPA Date], between Piper Sandler & Co., as underwriter, and the Community Facilities District (the “Purchase Agreement”). In connection with the distribution of the Preliminary Official Statement relating to the Bonds, the Developer executed a Letter of Representations of [University Park Investor, LLC] [AG EHC II Toll CA 2 LP], dated [POS Date] (the “Letter of Representations”). Capitalized terms used but not defined in this Bring-Down Certificate have the same meanings as set forth in the Letter of Representations. The undersigned, on behalf of the Developer, further certifies as follows: (1) The undersigned is familiar with the facts certified in the Letter of Representations and this Bring-Down Certificate and is authorized and qualified to certify the same as an authorized representative of the Developer. (2) Each statement made in the Letter of Representations is affirmed and restated as if made on the date hereof; provided that each statement made in the Letter of Representations referring to the Preliminary Official Statement is affirmed as it relates to the Official Statement dated [BPA Date] relating to the Bonds (the “Final Official Statement”). (3) To the Actual Knowledge of the Undersigned (as defined in the Letter of Representations), no event has occurred since the date of the Preliminary Official Statement that has, in any material way, adversely affected the statements and information described in Paragraph 13 of the Letter of Representations (subject to the limitations and exclusions contained in Paragraph 13 of the Letter of Representations) relating to: Page 1044 of 1128 E-37 (i) the business, properties, operations, prospects or financial condition of the Developer, or any Relevant Entities, (ii) the Developer’s ability to own, develop and sell the Property, or (iii) the Developer’s ability to pay Special Taxes on the Property (to the extent the responsibility of the Developer) prior to delinquency, which should be disclosed in the Final Official Statement for purposes for which it is to be used in order to make such statements and information contained in the Final Official Statement not misleading in any material respect. (4) The Developer has duly executed and delivered [the Acquisition Agreement, the CVWD JCFA], and the Developer Continuing Disclosure Agreement, and [each of the Acquisition Agreement, the CVWD JCFA], and the Developer Continuing Disclosure Agreement constitutes the legal, valid and binding obligation of the Developer, enforceable against the Developer in accordance with its terms, except as such enforcement is limited by bankruptcy, insolvency, reorganization, arrangement, moratorium, fraudulent conveyance, and other similar laws relating to or affecting the rights of creditors and certain equitable, legal, or statutory principles affecting the enforcement of contractual rights generally, regardless of whether such enforcement is considered in a proceeding in equity or at law. (5) For a period of 90 days after the Closing Date, if the Developer has actual knowledge of any event relating to or affecting the Developer, its Relevant Entities, or the acquisition, ownership development or sale of the Property which could cause the information under the captions of the Final Official Statement indicated in Section 13 of the Letter of Representations (and subject to the limitations and exclusions contained in Section 13 of the Letter of Representations) to contain an untrue statement of a material fact or to omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, the Developer shall notify the Community Facilities District and the Underwriter and if, in the opinion of counsel to the Community Facilities District or the Underwriter, such event requires the preparation and publication of a supplement or amendment to the Final Official Statement, the Developer shall reasonably cooperate with the City and the Community Facilities District in the preparation of an amendment or supplement to the Final Official Statement in form and substance satisfactory to counsel to the City, the Community Facilities District and to the Underwriter. The undersigned has executed this Bring-Down Certificate solely in his or her capacity as an authorized representative of Developer and he or she will have no personal liability arising from or relating to this Bring-Down Certificate. Any liability arising from or relating to this Bring-Down Certificate may only be asserted against the Developer. Dated: [Closing Date] [UNIVERSITY PARK INVESTOR, LLC, a Delaware limited liability company] [AG EHC II Toll CA 2 LP, a California limited partnership] By: Name: Page 1045 of 1128 E-38 Title: Page 1046 of 1128 EXHIBIT F CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) SPECIAL TAX BONDS, SERIES 2024 COMMUNITY FACILITIES DISTRICT CLOSING CERTIFICATE I, the undersigned, hereby certify that I am the ______________________ of the City of Palm Desert (the “City”), the City Council of which is the legislative body for City of Palm Desert Community Facilities District No. 2021-1 (University Park) (the “Community Facilities District”), a community facilities district duly organized and existing under the laws of the State of California (the “State”) and that as such, I am authorized to execute this Certificate o n behalf of the Community Facilities District in connection with the issuance of the above-referenced bonds (the “Bonds”). I hereby further certify on behalf of the Community Facilities District that: (A) to my best knowledge, after reasonable inquiry, no litigation is pending with respect to which the Community Facilities District or the City has been served with process or threatened against the Community Facilities District or the City (1) to restrain or enjoin the issuance of any of the Bonds or the collection of Net Taxes pledged under the Indenture; (2) in any way contesting or affecting the authority for the issuance of the Bonds or the validity or enforceability of the Bonds or the Community Facilities District Documents; or (3) in any way contesting the existence or powers of the Community Facilities District; (B) the representations and warranties made by the Community Facilities District in the Bond Purchase Agreement dated [BPA Date], between the Community Facilities District and Piper Sandler & Co. (the “Agreement”) are true and correct in all material respects on the Closing Date, with the same effect as if made on the Closing Date; (C) no event affecting the Community Facilities District has occurred since the date of the Final Official Statement that, as of the Closing Date, would cause any statement or information contained in the Final Official Statement under the caption “ABSENCE OF LITIGATION” to be incorrect or incomplete in any material respect or would cause the information contained under such caption in the Final Official Statement to contain an untrue statement of a material fact or omit to state a material fact necessary in order to make such statements therein, in the light of the circumstances under which they were made, not misleading; (D) as of the date hereof, the Community Facilities District Documents are in full force and effect in accordance with their terms and have not been amended, modified or supplemented except in such case as may have been agreed to by the Underwriter; and (E) the Community Facilities District has complied with all the agreements and satisfied all the conditions on its part to be performed or satisfied under the Community Facilities District Documents prior to issuance of the Bonds. Page 1047 of 1128 F-40 Capitalized terms not defined herein shall have the same meaning set forth in the Agreement. IN WITNESS WHEREOF, the undersigned has executed this certificate as of the date herein below set forth. Dated: [Closing Date] CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) By: _______________________________________ Name: Title: Page 1048 of 1128 Page 1049 of 1128 Page 1050 of 1128 ACTION CALENDAR – ITEM 14C APPROVE AGREEMENT IN SUBSTANTIAL FORM BY AND BETWEEN THE CITY OF PALM DESERT AND THE COUNTY OF RIVERSIDE SETTING THE TERMS FOR WITHDRAWAL FROM THE RIVERSIDE COUNTY LIBRARY SYSTEM THE DOCUMENT IS FORTHCOMING AND WILL BE DISTRIBUTED AND POSTED ON THE CITY’S WEBSITE AS SOON AS IT IS AVAILABLE. Page 1051 of 1128 Page 1052 of 1128 Page 1 of 4 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 15, 2024 PREPARED BY: Chris Escobedo, Assistant City Manager REQUEST: APPROVE AGREEMENT IN SUBSTANTIAL FORM BY AND BETWEEN THE CITY OF PALM DESERT AND THE COUNTY OF RIVERSIDE SETTING THE TERMS FOR WITHDRAWAL FROM THE RIVERSIDE COUNTY LIBRARY SYSTEM RECOMMENDATION: 1. Approve Agreement in substantial form and authorize the City Manager to finalize the agreement with the County of Riverside setting the terms for withdrawal from the Riverside County Library system. 2. Authorize the City Attorney to make any necessary, non-monetary changes to the agreement. 3. Authorize the City Manager to execute all documents necessary to effectuate this action. BACKGROUND/ANALYSIS: Over the last eight months, staff have been working through the multiple items needed to withdraw from the Riverside County Library System and establish its municipal library system. At its regular meeting on June 8, 2023, the City Council voted to form a Library Taskforce to provide community input into the process and provided direction to staff to begin the process of withdrawing from the Riverside County Library System . On October 12, 2023, the City Council adopted Resolution No. 2023-047 approving the City’s withdrawal from the Riverside County Library System and assumption of the provision of library services in the City as of July 1, 2024. Thereafter, the City provided notice to the County of the withdrawal. On November 7, 2023, the County Board of Supervisors received and filed Resolution No 2023 - 047 regarding the withdrawal and directed the County’s Office of Economic Development to negotiate with the City on matters related thereto, including but not limited to 1) lease of the library building and contents, 2) transfer of funds for library operations, and 3) drafting of an agreement regarding the transfer of the Palm Desert Library branch. Thereafter, the County provided the California Board of Equalization notice of the City’s withdrawal from RCLS effective July 1, 2024, which notice was provided prior to the required December 2, 2023, timeframe defined in the California Education Code. The following is a summary of the key dea l points by category. Lease and Building The City will operate the municipal library out of the current library location, which is located at 73-300 Fred Waring Drive. The building is owned by the Desert Community College District. The proposed 5-year lease agreement is also for Council consideration at this meeting. The City will operate out of the current site until a new library is fully constructed. The City has released Page 1053 of 1128 City of Palm Desert Withdrawal Agreement from the Riverside County Library System Page 2 of 4 an RFP for the design of a new library building. However, a new facility will t ake three – five years to design, build, occupy, and open. Library Contents and Transfer of Property within the Library The County shall transfer at no cost, ownership of the mutually agreed upon personal property within the Library, including, but not limited to all collections (including books and resource materials) to the City for the operation of the library. Staff anticipates retaining 95% of the collection (the County plans to retain the local history collection (equivalent to 5% of the branch’s holdings) as it is owned by the County of Riverside). Staff intends to work with the Palm Desert Historical Society on re-populating the local history section. Staff has been working directly with the existing library staff to memorialize the complete inve ntory, which will also include computers and furniture. Transfer of Funds for Library Operations (Property Tax, RDA Pass-Through and Capital Funds) Property Tax and RDA-Pass Through At present, all library-related, Palm Desert, property tax and RDA -pass-through revenues go entirely to the County of Riverside as they are the provider of library services in Palm Desert. By withdrawing, a portion of the revenue that is sent to them now will get redirected to the City as it becomes the direct provider of library services. On July 1, 2024, the County shall begin the transfer of approximately $2,208,000 of funding from: AB 8 – statutory property tax revenue from property in Palm Desert e stimated at $954,000 annually. Library-related pass-through funding (from all applicable project areas) is estimated at $1,254,000 annually. Additionally, the County has agreed to the City verifying the actual amounts by December 31, 2024, and showing the revenue in a separate fund to be tracked. The ongoing revenue transfer is lower than the estimated $2,600,000 the County provided the City in June of 2023 shown below. AB 8 – In June of 2023, the estimate provided was $1,200,000. Library-related pass-through, In June of 2023, the estimate provided was $1,400,000. It was an error on the part of the County when they provided the AB 8 $1,200,000 estimate. City staff has worked with the County Auditor Controller’s Office to affirm the new estimate of $954,000 is more accurate as staff reviewed the County’s worksheets. On Library-related pass through, the County elected to provide a more conservative estimate of the now $1,254,000 versus the $1,400,000. Once the revenue is redirected to the City, it wil l grow like normal Page 1054 of 1128 City of Palm Desert Withdrawal Agreement from the Riverside County Library System Page 3 of 4 property tax revenue. The following chart shows the anticipated revenue growth provided by the City’s Finance Department. Source 2024/25 2025/26 2026/27 2027/28 2028/29 AB8 954,000 973,080 973,080 973,080 973,080 Pass Thru 1,254,000 1,279,080 1,304,662 1,330,755 1,357,370 Total Library Ops 2,208,000 2,252,160 2,277,742 2,303,835 2,330,450 *Assumes max property tax 2% growth annually. Capital Funds Following the dissolution of Redevelopment, the City was required to transfer $11 million in library-related pass-thru revenue to the County of Riverside pursuant to ABX1 26 (enacted in 2011). The existing library building is half used by the County for library services and the other half was used as a library by the Desert Community College District. The Desert Community College District left the existing library building and renovated another campus building as a library within the College of the Desert campus. City staff once had plans to buy out the College’s lease and utilize the entire building for City and County use. The lease -buyout was calculated at approximately $4 million. In 2013, the County agreed to transfer this money to the City so that it could buy out the lease. The funds have been s itting with the County since that time and the City did not complete the buy-out of the lease. With this withdrawal, the County would transfer the $4 million to the City, which would be used for the creation of the new Palm Desert Library. Other Agreement Terms The City has the option to offer employment to staff employed at the Library prior to June 30, 2024. Employment opportunities at the new Palm Desert Municipal Library are subject to an interview, selection, and probationary process. Within 15 days of the effective date of this agreement, the County will provide the City all library-related records, data, information, circulation data, along with the Library’s bibliographic and item records. The City will begin work on May 13, 2024, to refresh the space and prepare it for municipal library services on July 1, 2024. The agreement contains language outline the access and procedures to assist with the transition of services. Following the City Council's consideration of this item, if ap proved, the Agreement will be considered by the Riverside County Board of Supervisors in March 2024. Provided they approve, the County will begin the transfer of the $4 Million in capital funds, new revenue will become effective July 1, 2024, and the terms of withdrawal will be final. Legal Review: This report has been reviewed by the City Attorney’s office. FINANCIAL IMPACT: Page 1055 of 1128 City of Palm Desert Withdrawal Agreement from the Riverside County Library System Page 4 of 4 By approving this agreement, the City will begin receiving an estimated $2.2 Million annually in redirected library property tax and SARDA pass-through revenue. Any library costs that exceed this revenue amount may impact the General Fund. Additionally, the City will receive a $4 Million one-time payment to the City, which will be set aside in the Library Building Capital Fund (452) and may be used for the new library. ATTACHMENT: Withdrawal Agreement Page 1056 of 1128 1 AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT AND THE COUNTY OF RIVERSIDE SETTING THE TERMS FOR WITHDRAWAL FROM THE RIVERSIDE COUNTY LIBRARY SYSTEM THIS Agreement Setting the Terms for Withdrawal from the Riverside County Library System (hereinafter, “Agreement”) is entered into this _______ day of ____________, 2024 (the “Effective Date”) by and between the City of Palm Desert, a California municipal corporation (“City”), and the County of Riverside, a political subdivision of the State of California (“County”). For purposes of this Agreement, the City and the County may each be referred to individually as “Party” and collectively as the “Parties.” RECITALS WHEREAS, the Riverside County Library System (“RCLS”) is a public library system with multiple branches in Riverside County, California, established by the County pursuant to Education Code, section 19100 et seq.; and WHEREAS, the County operates the Palm Desert Library (“Library”), a county free library, within the Palm Desert Library Building (“Building”) located within the City’s jurisdictional boundaries; and WHEREAS, the Palm Desert Library is currently a part of RCLS, and its residents receive the benefits of the Library, and the property within the City is liable to taxes levied for county free library purposes; and WHEREAS, the Parties, together with the Palm Desert Redevelopment Agency (“RDA”), and the Desert Community College District (“District”), established the terms and conditions for the funding, planning, construct ion, operation and maintenance for and of the Building in the 1993 Cooperative Agreement, dated March 11, 1993, by and between the Parties, together with the Lease Agreement, dated March 2, 1993 by and between the County and District for the operation of the Library (“Lease”); and WHEREAS, the District owns the Building and the County leases a portion of the Building for use as the Library; and WHEREAS, the Parties and other affected agencies entered into various RDA Cooperative Agreements in 1987, 1988, 1992 and 1993 to allow RDA to expand into new project areas and set forth the formula for sharing of the resulting tax increment, including in part, the formula for sharing of the resulting tax increment by the City, County, RDA and the District for the Library; and Page 1057 of 1128 2 WHEREAS, pursuant to AB X1 26 (enacted in 2011), and the California Supreme Court’s decision in California Redevelopment Association, et al. v. Ana Matosantos, et al., 53 Cal. 4th 231 (2011), all redevelopment agencies in the State of California, including the RDA, dissolved as of February 1, 2012, and the Successor Agency of Palm Desert Redevelopment Agency was established as the successor entity to the RDA; and WHEREAS, on October 12, 2023, the City Council held a public hearing and approved Council Resolution No. 2023-047, withdrawing from the RCLS effective on July 1, 2024, and indicating its intent to assume provision of library services by establishing a Palm Desert Municipal Library effective July 1, 2024 (the “Withdrawal”), pursuant to Education Code section 19116. Thereafter the City provided notice to the County of the Withdrawal and the County provided noticed to the State Board of Equalization on November 27, 2023; and WHEREAS, on November 7, 2023 the County Board of Supervisors re ceived and filed City Resolution No. 2023-047 regarding the Withdrawal and directed the County’s Office of Economic Development to begin negotiations with the City on matters related thereto, including but not limited to (1) Lease of the Library Building and Contents, (2) Transfer of Funds for Library Operations, and (3) Drafting of an agreement regarding the transfer of the Palm Desert Library branch. Thereafter the County provided the California Board of Equalization notice of the City’s withdrawal from the RCLS effective July 1, 2024, which notice was provided prior to December 2, 2023; and WHEREAS, the purpose of this Agreement is to establish the terms for the Withdrawal, including the City’s assumption of the Lease, the transfer of personal property (including books, computer systems, furniture, and furnishings) and redirection of funding to the City for its operation of the new Palm Desert Municipal Library, and ongoing collaboration between the Parties for the transition to and operation of the new Palm Desert Municipal Library and use of the Building; and NOW, THEREFORE, in consideration of the preceding Recitals and the mutual covenants contained herein, the Parties hereby set forth their respective mutual understanding as to the terms and conditions regarding the Withdrawal. AGREEMENT Section 1. Recitals. The Recitals stated above are incorporated into and made part of this Agreement. Section 2. Terms of Withdrawal. The Parties agree as follows with regard to the Withdrawal: Page 1058 of 1128 3 A. Transfer of Property Taxes and RDA Pass Through Funds. 1. Transfer of Property Taxes and RDA Pass Through Funds by the County to the City: a. Effective July 1, 2024, and annually thereafter (subject to future adjustment as set out in Section 2.A.1.b below), in accordance with Education Code Section 19116(b) the County's Auditor Controller shall direct an estimated $2,208,000 of funding from the sources described below (the “Funding Sources”) to the City: i. AB 8 Funding attributable to real property within the City’s boundaries: estimated at $954,000.00 ii. Library related RDA Pass Through Funding (from all applicable project areas): estimated at $1,254,000.00 b. Base Year: The County and the City shall, no later than December 31, 2024, confirm the actual amounts identified in section 2.A.1.a for the 2023/24 fiscal year in order to establish the Base Year amount, as defined and set forth in Education Code Section 19116. The County’s Auditor-Controller shall direct the transfer of AB 8 property tax funding and RDA pass through funding to a separate account, details of which shall be specified by City. Following the Base Year, the funds will be listed as general property tax revenue to the City and be adjusted forward according to the normal property tax rules in accordance with Education Code Section19116(b). B. Transfers of Library Capital Funds by County to the City. The County shall transfer $4 Million in Library Capital Funds previously titled, Palm Desert Library District Improvement Fund, for the construction or improvement of the Palm Desert Library. Funds shall be transferred the earlier of 30 days of execution of this Agreement, or June 30, 2024. C. Building Lease. The City anticipates entering into a new lease with the District for the Building. County intends to enter into a separate Lease termination agreement with the District. Page 1059 of 1128 4 D. Transfer of Personal Property within the Library. The County shall transfer, ownership of the mutually agreed upon personal property within the Library, including, but not limited to, all collections excluding local history (including books and materials) (the “Personal Property”), to the City for the operation of the Palm Desert Municipal Library. The Parties hereby agree to work collaboratively to memorialize an inventory of the Personal Property to be transferred to the City, which transfer shall be at no cost to the City, and shall be effective on or before May 10, 2024. E. Employment of County Library Staff. The City has the option to offer employment to staff employed at the Library prior to June 30, 2024. Employment opportunities at the new Palm Desert Municipal Library are subject to an interview, selection, and probationary process with the City. F. Transfer of Data. Within fifteen (15) days of the Effective Date the County shall provide the City all Library related records, data, information on patron numbers, and circulation data, along with the Library’s bibliographic and item records from the RCLS integrated library system for use by the City in the provision of services for the future Palm Desert Municipal Library. The Parties hereby agree to work collaboratively to memorialize the records, data and information to be transferred to the City, which transfer sh all be at no cost to the City. Additionally, between April 30 and May 10, 2024, the County will resupply the City with up-to-date bibliographic and item records from the RCLS integrated library system. G. Access of Library/ Building by City. The City intends to conduct work to refresh the Library/ the Building commencing on or around May 13, 2024. Accordingly, the County shall: 1. Grant the City access to the Library between the Effective Date of this Agreement and April 30, 2024 for the purposes of City work in conducting facility assessment and preparation of improvements to the Library and/or Building, and development of a transition schedule for the City’s operation of the Library. 2. Cease provision of services from the Library on April 30, 202 4 (provided however the County shall continue to provide electronic book and Page 1060 of 1128 5 database services to City residents through June 30, 2024, as described below). 3. Vacate the Library and/or Building (with the exception of the Library staff workroom) and remove any content to be retained by the County, as agreed to in writing by the County and City by May 10, 2024, which date may be extended upon written request by the County and written approval of the City. 4. Vacate the Library staff workroom by May 13, 2024, which date may be extended to May 31, 2024 upon written request by the County and written approval of the City. 5. Continue to offer electronic book and database access to City residents through June 30, 2024. On and after July 1, 2024, City residents that are also RCLS cardholders will maintain their RCLS library cards, and may continue to access RCLS services. 6. Work with the City to collect RCLS-owned materials mistakenly returned to the Library after April 30, 2024. From May 1, 2024 -June 30, 2024, the County shall collect materials from the exterior book drop at the Library and shall return any materials to be transferred to the City pursuant to this Agreement, for use by the City in the provision of services for the future Palm Desert Municipal Library. H. The Parties shall agree, as a provision of the Withdrawal Agreement, to settle and release all claims or controversies that they may have against each other related to the Library, Building, or any agreements related thereto. Section 3. Settlement and Release of Claims. The County and City hereby agree that the terms of this Agreement fully resolve all claims related to those portions of the various above referenced Cooperative Agreements pertaining to the Library, the Building, and fun ding related thereto. Section 4. Indemnification. Each Party (the “Indemnifying Party”) shall defend, indemnify, and hold harmless the other Party and its officials, officers, employees, contractors, agents, and authorized volunteers (“Indemnified Parties”) from any and all claims, demands, damages, liabilities, fines, expenses, and related costs and fees, including attorney’s fees, arising from or related to the Indemnifying Party’s material breach of this Agreement or the negligence, recklessness, or willful misconduct of the Indemnifying Party or its officials, officers, employees, contractors, agents, and authorized volunteers. Page 1061 of 1128 6 Section 5. Costs. The Parties shall be responsible solely for their own costs and expenses, including attorney’s fees, related to the drafting, negotiation, and execution of this Agreement. Section 6. Nature of Agreement. The Parties acknowledge, understand and agree that this Agreement does not, and shall not be construed to create, a principal-agent relationship; a master-servant relationship; an employer-employee relationship; a partnership relationship; a joint venture relationship; or any like association. Section 7. Notices. All notices required or permitted to be given under this Agreement shall be i n writing and shall be personally delivered, or sent by fax or certified mail, postage prepaid and return receipt requested, addressed as follows: City Todd Hileman City Manager 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 County Jeffrey A. Van Wagenen County Executive Officer 4080 Lemon Street, 4th Floor Riverside, CA 92501-3659 Notice shall be deemed effective on the date personally delivered or transmitted by facsimile or, if mailed, three (3) days after deposit of the same in the custody of the United States Postal Service. Section 8. Severability. If any term or condition of this Agreement is declared or determined by any court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Agreement shall not be affected thereby and the Agreement shall be read and construed without the invalid, void or unenforceable provision(s). Page 1062 of 1128 7 Section 9. Attorney’s Fees. In the event any Party initiates legal action to enforce any provision of this Agreement or to recover damages for the breach of any provision contained herein, the prevailing Party in such litigation shall recover such costs and expenses as may be incurred by the prevailing Party, including court costs, reasonable attorney’s fees and other related costs and expenses. This provision shall survive the early termination or expiration of this Agreement. Section 10. Governing Law/Venue. This Agreement shall be interpreted and governed according to the laws of the State of California. In the event of litigation between the Parties, venue, without exception, shall be in the Riverside County Superior Court of the State of California. If applicable law absolutely requires that all or part of any such litigation be tried in a United States Federal District Court, venue, without exception, shall be in the Eastern Division of the Central District of California located in the City of Riverside, California. This provision shall survive the termination of this Agreement. Section 11. Modification. No amendment to, or modification of, this Agreement shall be valid or enforceable unless made by mutual written agreement of the Parties. Section 12. Third Parties. The Parties agree that nothing in this Agreement may be construed to create rights in, or to grant remedies to, any third party as a beneficiary of this Agreement. All rights and benefits under this Agreement inure exclusively to the Parties. Section 13. Time Is Of The Essence. The Parties agree that time is of the essence under this Agreement. The Parties agree to initiate and complete all actions required under this Agreement with all reasonable diligence. Section 14. Entire Agreement. This Agreement, including any attached exhibits, constitutes the entire, complete, final and exclusive expression of the Parties with respect to the matters addressed herein and supersedes all other agreements or understandings, whether oral or written, or entered into between the Parties prior to the execution of this Agreement. Page 1063 of 1128 8 Section 15. Assignment. No Party may assign any of its rights under this Agreement, except with the written prior consent of the other Parties. All other assignments of rights are prohibited under this section. Section 16. Authority To Sign. The individuals executing this Agreement represent and warrant that they have the right, power, legal capacity, and authority to enter into and to execute this Agreement on behalf of their respective legal entities. Section 17. Counterparts. This Agreement shall be executed in any number of counterparts each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. IN WITNESS WHEREOF, the City and the County have executed this Agreement setting terms for withdrawal from the Riverside County Library System to be in effect as of the Effective Date set forth above. CITY OF PALM DESERT, a California municipal corporation DATE:______________________ BY:____________________________ Name Title ATTEST:______________________________ COUNTY OF RIVERSIDE, a political subdivision of the State of California DATE:______________________ BY:____________________________ Name Title ATTEST:______________________________ Page 1064 of 1128 AGREEMENT ON TERMS OF WITHDRAWAL FROM COUNTY LIBRARY SYSTEM February 15, 2024 Page 1065 of 1128 How we got here June 8, 2023 Council gives direction to begin process of withdrawing & appoints task force 1 October 12, 2023 Council adopts resolution 2023-047 approving withdrawal 2 November 7, 2023 County accepts resolution and directs County staff to prepare withdrawal agreement 3 December 2, 2023 County provides notice to the State before this statutory deadline 4 February 15, 2024 Agreements finalizing withdrawal to begin municipal library July 1, 2024 5 2Page 1066 of 1128 AGREEMENT OVERVIEW LEASE & BUILDING •Lease current site •RFP issued for new library building •3 years to make it operational LIBRARY CONTENTS •City shall receive 95% of the contents at no cost •County to transfer library -related records and data FUNDING •$2.2 million in annual revenue beginning July 1, 2024 •Funds will be tracked separately and verified by Dec 31, 2024 •$4 Million in Capital Funds to be transferred by June 30, 2024 to City. 3Page 1067 of 1128 Funding 4 Source 2024/25 2025/26 2026/27 2027/28 2028/29 AB8 954,000 973,080 973,080 973,080 973,080 Pass Thru 1,254,000 1,279,080 1,304,662 1,330,755 1,357,370 Total Library Ops 2,208,000 2,252,160 2,277,742 2,303,835 2,330,450 *Assumes max property tax 2% growth annually. County Estimate Revised from $2.6M to $2.2M (Final Verification by Dec 31, 2024) Page 1068 of 1128 Other Deal Points 5 •City has the option to employ staff at the current library •City will begin work on May 2024 to refresh the space •Opening day staffing will be achieved by June 15th for July 1 service start •City has $695,000 escrowed since 2012 •Other funding available –E-rate, grants, and CENIC Page 1069 of 1128 THANK YOU Page 1070 of 1128 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 15, 2024 PREPARED BY: Gary Shaffer, Director of Library Services REQUEST: EXECUTE LEASE AGREEMENT BETWEEN THE CITY OF PALM DESERT AND THE DESERT COMMUNITY COLLEGE DISTRICT FOR 20,802 SQUARE FEET OF SPACE IN THE LIBRARY BUILDING LOCATED AT THE SOUTH END OF THE CAMPUS RECOMMENDATION: 1. Authorize the City Manager to enter into an up to five-year lease agreement with the Desert Community College District to lease 20,802 square feet of space in the library building at the south end of the campus in the base -year amount of $112,310.37 with a separate $23,000 credit in year-one only. 2. Authorize the City Attorney to make any necessary non-monetary changes to the agreement. 3. Authorize the City Attorney to make any necessary conforming and clarifying changes acceptable to the City Manager. 4. Authorize the City Manager to execute all documents necessary to effectuate this action. BACKGROUND/ANALYSIS: The City is taking over local library services from the County of Riverside beginning July 1, 2024. At its regular meeting on June 8, 2023, the City Council voted to form a Library Taskforce to provide community input into the process. On October 12, 2023, the City Council adopted Resolution No. 2023-047 approving the City’s withdrawal from the Riverside County Library System and assumption of the provision of library services in the City as of July 1, 2024, and indicating the City’s intent to establish an independent municipal library. The City has released an RFP for the design of a new library building. However, a new facility will take three – five years to design, build, occupy, and open. Through this lease, the City will continue to operate at the current library site. While the City, through its former Redevelopment Agency, shared in funding the building when first built, the lease with the College is intended to cover the College’s annual expenses for the utilities and maintenance of the grounds around the portion of the building the City will be occupying. Year 1 Lease make-up Cost of Lease Components Groundskeeper Services $ 42,318.02 Utilities (Electricity, Gas, Water, and Sewer) $ 69,992.35 Credit for initial 1-time City performed Groundskeeping (Year 1 only) ($ 23,000.00) Total Year 1 $ 89,310.37 Page 1071 of 1128 City of Palm Desert Execute Lease Agreement with College of the Desert Page 2 of 2 Year 2-5 lease est. costs per year + annual escalator $112,310.37 The lease agreement has a five-year term, though the City may cancel the lease with 60 days’ notice prior to the end of any given fiscal year. The lease also includes a minimum financial escalator of 3% per fiscal year. The maximum escalator, per the terms of the lease, may not exceed the College’s Cost of Living Adjustment (COLA) for the given fiscal year. During the period in which the City occupies the building, the College will maintain all structural and systematic components including, but limited to, roof, air-conditioning equipment, heating equipment, plumbing, electrical wiring and fixtures, communication wiring and fixtures including all lights and replacement of light bulbs, windows and structural parts. While the annual lease amount is $112,310 .37, the College is offering a first-year discount of $23,000 in return for the City completing some work on the grounds surrounding the library building prior to its opening the facility as a City-run municipal library. This includes, but is not limited to, placement of decomposed granite, pruning and trimming of trees and plants, and placement of new trees, and removal of stumps. Legal Review: This report has been reviewed by the City Attorney’s office. FINANCIAL IMPACT: This lease will incur a $112,310.37 - $23,000 (grounds credit) charge in year one and will include an agreed upon escalator in subsequent years, as outlined above. Also as noted above, the City will incur $23,000 in costs to bring the grounds up to an acceptable level and the first year’s lease payment will be lowered by that same amount. Lease and one-time groundskeeping costs will be funded by the library’s existing operating budget. ATTACHMENT: Lease agreement Page 1072 of 1128 1 LEASE FOR PALM DESERT LIBRARY 73-300 Fred Waring Drive Palm Desert, California THIS LEASE is entered into as of ________________, 2024 by and between Desert Community College District (herein called the “District”) and the City of Palm Desert (herein called the “City”). District and City may be referred to in this Lease individually as a “Party” or jointly as the “Parties.” RECITALS This Lease is entered into upon the following facts, understandings, and intentions of the District and City. A. District owns certain real property located at 73-300 Fred Waring Drive, Palm Desert, California that contains a 41,189 square feet building (“District Building”), which includes a southern approximately 16,609 square feet area known as the Palm Desert Library (“Library Premises”) and an approximately 4,193 square feet area known as the “Common Area,” which is located on the College of the Desert campus, depicted in Exhibit “A,” attached hereto and incorporated herein by reference. B. The District desires to lease to the City, and City desires to lease from District, the exclusive use of the Library Premises and the nonexclusive, shared use of the Common Area pursuant to the terms of this Lease. NOW THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties agree as follows: Page 1073 of 1128 2 1. Lease. The District hereby leases the exclusive use of the Library Premises and grants the nonexclusive, shared use of the Common Area to the City, and City hereby leases the Library Premises and shared use of the Common Area from the District on the terms and conditions set forth in this Lease. 2. Description. The Lease Area leased hereby consists of the southern approximately 16,609 square feet of the District Building located at 73 -300 Fred Waring Drive, Palm Desert, California, known as the Library Premises, and the approximately 4,193 square feet of Common Area to be commonly shared and used by the City, the District, and any other tenants of the District Building, if any (hereinafte r, the Library Premises and the Common Area shall be jointly known as the “Lease Area”). 3. Annual Fee. The Lease Area is leased to the City for a base rate of One Hundred Twelve Thousand Three-Hundred and Thirteen dollars ($112,313.00) annually (“Annual Fee”). The Annual Fee due to District under this Lease shall be paid by City to District by the start of each fiscal year, no later than the first (1st) day of July each year, at the District’s address set forth hereinafter for notices, or to such other person and/or at such other address as District may direct by written notice to City. The Annual Fee includes the costs of rent, utilities, and general maintenance labor, as described below and as set forth in the Fee Structure in Exhibit “B.” The District may raise two-thirds (2/3) of the Annual Fee each year by a rate by no more than three percent (3%) of the prior year’s Annual Fee amount, and raise the remaining one-third (1/3) of the Annual Fee by a percentage increase equal to no more than the statut ory Cost of Living Adjustment for the following fiscal year, as adopted by the California State Legislature, based on the prior year’s Annual Fee. The District shall notify the City of the increased annual rate no Page 1074 of 1128 3 later than May 31st each year. Upon proof of work and agreement between the City and the District, the City may deduct reasonable charges from the base rent for one -time landscape services described in 3(a) and 3(b) from the first -year lease agreement. If landscape services are less the not to exceed amount of $23,000.00, the City will reimburse the District a credit within fifteen (15) days after the work has been completed. The deduction in the not to exceed amount of $23,000.00 will be applied to year one of the base rent. The City will contract services for the following one-time cleanup of landscape work around the exterior of the leased area: i. An arborist contractor will trim the palms and prune the trees around the exterior of the leased grounds. Addition of (15) fifteen 24’ box trees be planted on the exterior of the leased grounds and that (7) seven trees, palms, and their stumps be removed. ii. Add decomposed granite to the leased grounds and new plantings be added to the courtyard. (a) Utilities. District shall provide, or cause to be provided, and pay for all utility services that City may require or desire in the operation and use of the Lease Area. (b) Maintenance Labor. The District shall provide, or cause to be provided, and pay for, all reasonable maintenance services within the District Building, including the Lease Area, as follows: District shall maintain the physical exterior and interior of the Lease Area and all structural and systematic components thereof, including, but limited to, roof (including roof membrane), air conditioning equipment, heating equipment, plumbing, electrical wiring and fixtures, communication wiring and fixtures including all lights and replacement of light bulbs, windows, gutters, and structural parts, in good Page 1075 of 1128 4 working condition and repair, in accordance with industry standards and in compliance with all applicable laws, ordinances, rules and regulations. Any maintenance services and/or facility improvements to the Lease Area that exceed the standard upkeep and maintenance of the Lease Area necessary for its r egular use as set forth in section 4(a) shall be addressed as set forth in section 9 and mutually agreed upon by both parties. Any services performed by the District shall not interfere with City’s use or visibility of the Lease Area and shall not impede the City’s access to the Lease Area. 4. Use. a. The Lease Area is leased primarily for the purpose of providing space to operate and conduct a public library, for use by the City of Palm Desert, but may be used for any official business by the City of Palm Desert government with the prior written consent of the District, which shall not be unreasonably withheld, conditioned, or delayed. b. City shall have the exclusive possession of the Lease Area and shared common usage of the Common Area, which shall include the walkways, rest rooms, driveways, vehicular parking spaces, sidewalks, landscaped courtyards, planted areas, monument signage, and other similar facilities maintained by the District for its own use, other tenants, and the public. 5. Term. (a) The Term of this Lease shall commence upon execution of this Lease Agreement and subject to consideration of Section 6 below, continue in full force and effect for a period of five (5) years. (b) Any holding over by City after the expiration of said term shall be deemed a month - to-month tenancy upon the same terms and conditions of this Lease. Page 1076 of 1128 5 (c) City, in its sole discretion, shall have the right of first refusal as to the renewal of this Lease at the expiration of said term on whatever terms and conditions the District may then offer. 6. Right to Early Termination. The City shall have the option to terminate the Lease, with a sixty (60) day advance written notice to the District. The District shall have the option to terminate the Lease, with a sixty (60) day advance written not ice to the City prior to the end of the fiscal year (June 30) to take effect no earlier than the start of the following fiscal year, e.g. notice to terminate given May, 2024 to be effective July 1, 2024. Upon the termination of the Lease, District and City shall have no further rights, obligations or claims with respect to each other arising from the Lease, except for those obligations of under this Lease which expressly survive and continue after the termination or expiration of the Lease. 7. Consideration. In Consideration for the use of the Lease Area, City shall provide library services to City residents. 8. Custodial and Grounds. a. City shall provide their own custodial services within the Lease Area, including the Library Premises, and Common Areas, as set forth in Exhibit “A.” District shall provide and pay for custodial services within the remainder of the District Building, not including the Common Areas. b. District shall provide, or cause to be provided, and pay for all landscape and other exterior grounds care for the Lease Area. Such services shall be provided at a level which shall keep the Lease Area in the same condition as other portions of the District Building. c. District shall, at its cost and expense, provide maintenance of parking lots Page 1077 of 1128 6 designated for public library use. d. District represents and warrants that the exterior portions of the District Building, including access to the Library Premises and Lease Area, are compliant with ADA (including parking areas) as of the commencement of the Term, and that any capital expenditures or other expense to comply with Laws in effect as of the commencement of the Lease shall be at District’s expense and not passed through to City in the Annual Fee or otherwise. e. Upon prior written consent by the District, not to be unreasonably withheld, conditioned, or delayed, the City shall have the right to make reasonable exterior modifications to accommodate Information Technology (IT) infrastructure needs, provided it provides the District notice (which may be verbal or written) within five (5) days of commencing such work, provided the modification is not brought about by an emergency situation, in which case City may proceed with such work without notice. District shall approve or disapprove City’s request within ten (10) business days after District’s receipt thereof. f. Upon prior written consent by the District, not to be unreasonably withheld , conditioned, or delayed, the City shall have the right to change the existing monument sign to better reflect the use of the District Building as a public library only. District shall approve or disapprove City’s request within ten (10) business days af ter District’s receipt thereof. The City shall remove the sign within thirty (30) days of the expiration of the Lease. g. City shall not be required to remediate or pay (either as part of the Annual Fees or otherwise) for the removal or remediation of Hazard ous Materials to the extent such Page 1078 of 1128 7 Hazardous Materials exist in an amount in violation of applicable Hazardous Materials Laws and (i) were present in the Lease Area prior to the commencement of this Lease, or (ii) are placed in, on under or about the Lease A rea by District or any District’s employees, agents, contractors, other tenants, or third parties. 9. Maintenance/Alterations. (a) As set forth in section 3, District shall keep, repair, maintain, and replace as necessary, the physical exterior and interior of the Lease Area and all structural and systematic components thereof, including, but limited to, roof, air conditioning equipment, heating equipment, plumbing, electrical wiring and fixtures, communication wiring and fixtures including all lights and replacement of light bulbs, windows and structural parts, in good working condition and repair, in accordance with industry standards and in compliance with all applicable laws, ordinances, rules and regulations. (b) Within thirty (30) days after delivery of an invoice by District, City shall reimburse, or cause to be provided, and pay for any maintenance services and/or improvements to the Lease Area, including costs of any supplies, materials, and specialty equipment, that exceed the standard upkeep and maintenance of the Lease Area necessary for its regular use under section 4(a). Any such maintenance services and/or improvements as set forth in this subsection shall be permitted only upon the written request of the City Manager, or their designee, following the written approval of the Vice President for Administrative Services and/or Superintendent/President of the District. Any such maintenance services and/or improvements under this subsection shall comply with any and all applicable federal, state, local laws, rules, regulations, and any and all applicable District policies, procedures, regulations, and guidance. Page 1079 of 1128 8 (c) Any necessary repairs to the Lease Area shall be made by District as promptly as possible to keep the Lease Area in the condition necessary for its r egular use under section 4(a). The District understands timely response is required to ensure City operations continue with minimal interruption to ensure the safety of employees and delivery of services. To the extent reasonably feasible, the District s hall make efforts to commence repairs relating to any Base Building Systems, which shall include any mechanical, electrical, or plumbing system or component of the building, and any HVAC distribution system, and any fire safety system, within hours one (1) business day from receipt of written notice of the repair request, and to complete all other repairs within thirty (30) calendar days upon receipt of written notice. If, due to the nature of the particular repair or maintenance obligation, more than thirty (30) calendar days are reasonably required to complete the repair, the District shall not be in default under this Section, provided the District begins work within these thirty (30) calendars day period and diligently pursue this work to completion. All requests for repairs shall be submitted in writing by the City to the District. (d) If the City provides written notice to the District of an event or circumstance that requires the action of the District with respect to the replacement, repair or maintenan ce to the Lease Area or Base Building Systems serving the Lease Area as set forth in Section 3(c), above, and the District fails to provide such action as required by the terms of this Lease within the period specified in Section 9(c), the City may, but sh all not be obligated to, directly address the requested repair if: (1) the City delivers to the District an additional written notice advising the District that the City intends to take the required action to address the repair if the District does not begin to schedule the required repair or Page 1080 of 1128 9 maintenance within five (5) business days after the written notice of the repair request; and (2) the District fails to schedule the required work within the five (5) business day period. In the event the City makes the requested repair, District shall reimburse City for the reasonable costs of such repairs, within thirty (30) days of City’s providing District an invoice. (e) Upon prior written consent by the District, not to be unreasonably withheld, conditioned, or delayed, the City may at any time and from time to time at its expense, paint and decorate the interior of the Library Premises (including the right to paint the concrete block and stone walls), install trade fixtures and equipment, and make such changes, alterations, additions and improvements in and to the Library Premises, all as will in the judgment of the City better the Library Premises for the purposes for which the same are permitted to be used hereunder. District shall approve or disapprove City’s request within ten (10) business days after District’s receipt thereof. 10. Hold Harmless/Indemnification. a. Each Party to this Lease (“Indemnitor”) shall indemnify and hold harmless the other, its Agencies, Districts, Special Districts and Departments, their respective directors, officers, governing boards, elected and appointed officials, employees, agents and representatives (individually and collectively hereinafter referred to as “Indemnitees”) from any liability whatsoever, based or asserted upon any services of the Indemnitor, its officers, employees, subcontractors, agents or representatives arising out of or in any way relating to this Lease, including but not limited to property damage, bodily damage, or death, or any other element of any kind or nature whatsoever arising from the performance of the Indemnitor, its officers, employees, subcontractors, agents or Page 1081 of 1128 10 representatives Indemnitors from this Lease. The Indemnitor shall defend, at its sole expense all costs and fees, including, but not limited, to reasonable attorney fees, cost of investigation, defense and settlements or awards, the indemnities in any claim or action based upon such alleged acts or omissions. b. With respect to any action or claim subject to indemnification herein by the Indemnitor, the Indemnitor shall, at their sole cost, have the right to use counsel of their choice and shall have the right to adjust, settle, or compromise any such action or claim subject to the prior consent of Indemnitee; provided, however, that any such adjustmen t, settlement or compromise in no manner whatsoever limits or circumscribes the Indemnitor’s indemnification to Indemnitees as set forth herein. c. The Indemnitor’s obligation hereunder shall be satisfied when the Indemnitor has provided to Indemnitee the appropriate form of dismissal relieving Indemnitee from any liability for the action or claim involved. d. The specified insurance limits required in this Lease shall in no way limit or circumscribe the Indemnitor’s obligations to indemnify and hold harmless the Indemnitees herein from third party claims. e. In the event there is conflict between this clause and California Civil Code Section 2782, this clause shall be interpreted to comply with Civil Code 2782. Such interpretation shall not relieve the Indemnitor from indemnifying the Indemnitees to the fullest extend allowed by law. f. Survival of Indemnification. The paragraphs of this Paragraph 11 shall survive the expiration or earlier termination of this Lease until all claims against Indemnitor involving any of the indemnified matters are fully, finally, and absolutely barred by the applicable Page 1082 of 1128 11 statutes of limitations. 12. Insurance. (a) City Insurance. Without limiting or diminishing the City’s obligation to indemnify or hold the District harmless, the City shall procure and maintain or cause to be maintained, at its sole cost and expense, the following insurance coverages during the term of this Lease. Notwithstanding the foregoing, District shall accept City’s qualified self-insurance or risk pool insurance in lieu of the insurance policies set forth below. (b) Workers’ Compensation. If the City has employees as defined by the State of California, the City shall maintain statutory Workers’ Compensation Insurance (Coverage A) as prescribed by the laws of the State of California. Policy shall include Employers’ Liability (Coverage B) including Occupational Disease with limits not less than $1,000,000.00 per person per accident. The policy shall be endorsed to waive subrogation in favor of the District, its Board of Trustees, and their officers and employees. (c) Commercial General Liability. Commercial General Liability Insurance coverage, including but not limited to, premises liability, unmodified contractual liability, products and completed operation liability, personal and advertising injury, cyber liability, and cross liability coverage, covering claims which may arise from or out of the City’s performance of its obligation hereunder. Policy shall name the District, its Board of Trustees, and their officers, employees, volunteers, and agents as Additional Insureds by endorsement. Policy’s limit of liability shall not be less than $1,000,000.00 per occurrence combined single limit. If such insurance contains a general aggregate limit, it shall apply separately to this Lease or be no less than two (2) times the occurrence limit. (d) Vehicle Liability. If vehicles or mobile equipment, which include tractors, trailers Page 1083 of 1128 12 or similarly equipped vehicles, are used in the performance of the obligations under this Lease, then the City shall maintain liability insurance for all owned, non -owned or hired vehicles so used in an amount not less than $1,000,000.00 per occurrence combined single limit. If such insurance contains a general aggregate limit, it shall apply separately to this Lease or be no less than two (2) times the occurrence limit. Policy shall name the District, its Board of Trustees, and their officers, employees, volunteers, and agents as Additional Insureds by endorsement. If minor or pat ron transportation is provided by Lessee, the limits shall be changed to an amount not less than $5,000,000.00 combined single limit. (e) Property Insurance. “Special perils” form real property insurance covering the Lease Area including improvements, betterments, and loss of rents or loss of income providing protection against any covered peril included for an amount not less than the replacement cost of said Lease Area, including any Improvements thereto. Said policies shall contain a “Replacement Cost” endo rsement and shall include deductible amounts acceptable to the District. Said policies shall name the District as an additional insured and loss payee, as its interests may appear. “Special perils” form personal property insurance covering the City’s personal property on the Lease Area against any peril included in the classification of “Special Form” for an amount not less than one hundred percent (100%) of the replacement cost. (f) Sexual Abuse and Molestation Coverage. Sexual abuse and molestation coverage shall be no less than $4,000,000.00 per occurrence and $6,000,000.00 Page 1084 of 1128 13 aggregate. (g) General Insurance Provisions – All Lines. Any insurance carrier providing insurance coverage hereunder shall be admitted to the State of California and have an A.M. BEST ratin g of not less than an A:VIII (A:8) unless such requirements are waived, in writing, by the District’s Risk Manager. If the District’s Risk Manager waives a requirement for a particular insurer such waiver is only valid for that specific insurer and only f or one policy term. The City must declare its insurance self-insured retention for each coverage required herein. If such self -insured retentions exceed $500,000.00 per occurrence each such retentions shall have the prior written consent of the District R isk Manager before the commencement of this Lease. Upon notification of self -insured retention unacceptable to the District, at the election of the District’s Risk Manager, the City’s carriers shall either: 1) reduce or eliminate such self -insured retention as respects this Lease with the City, or 2) procure a bond which guarantees payment of losses and related investigations, claims administration, and defense costs and expenses. The City shall cause the City’s insurance carrier (s) to furnish the District with either 1) a properly executed original Certificate(s) of Insurance and certified original copies of Endorsements effecting coverage as required herein, and 2) if requested to do so orally or in writing by the District Risk Manager, provide original Certified copies of policies including all Endorsements and all attachments thereto, showing such insurance is in full force and effect. Further, said Certificate(s) and policies of insurance shall contain the covenant of the insurance carrier(s) that a minimum of thirty Page 1085 of 1128 14 (30) days written notice be given to the District prior to any material modification, cancellation, expiration or reduction in coverage of such insurance. If the City insurance carrier (s) policies does not meet the minimum notice requirement found herein, the City shall cause the City’s insurance carrier (s) to furnish a 30 -day Notice of Cancellation Endorsement. In the event of a material modification, cancellation, expiration, or reduction in coverage, this Lease shall terminate forthwith, unless the District receives, prior to such effective date, another properly executed original Certificate of Insurance and original copies of endorsements or certified original policies, including all endorsements and attachments thereto evidencing c overage’s set forth herein and the insurance required herein is in full force and effect. The City shall not commence operations until the District has been furnished original Certificates of Insurance and certified original copies of endorsements and if requested, certified original policies of insurance including all endorsements and any and all other attachments as required in this Section. An individual authorized by the insurance carrier to do so on its behalf shall sign the original endorsement for each policy and the Certificate of Insurance. It is understood and agreed by the Parties hereto that the 2City’s insurance shall be construed as primary insurance, and the District’s insurance and/or deductible and/or self-insured retentions or self-insured programs shall not be construed as contributory. The City is expressly obligated to provide for the legal defense and investigation of any claim against the District as an Additional Insured and for all costs and expenses incidental to such defense or investigation. Page 1086 of 1128 15 The insurance required herein, and the insurance carried by District, shall not be deemed to limit the respective insured Parties’ liability related to performance under this Lease. The procuring of insurance shall not be construed as a limitation on liability or as full performance of the indemnification and hold harmless provisions of this Lease. If, during the term of this Lease or any extension thereof, there is a material change in the scope of services; or, there is a material change in the equipment to be used in the performance of the scope of work; or, the term of this Lease, including any extension thereof, exceeds five (5) years; the District reserves the right to adjust the types of insurance and the monetary limits of liability required under this Lease, if in the District Risk Management’s reasonable judgment, the amount or type of insurance carrier by the City has become inadequate. If the City fails to procure any coverage require to be maintained hereunder, or renewal thereof, or to provide written evidence of the procurement or renewal thereof on a timely basis, the District may, but is not required to, after having given five (5) working days written notice to the City, procure such coverage and charge its cost to the City. The City shall pass down the insurance obligations contained herein to all tiers of subcontractors working under this Lease. The insurance requirement contained in this Lease may be met with a program(s) of self-insurance acceptable to the District. 27. The City agrees to notify the District of any claim by a third party or any incident or event that may give rise to a claim arising from the performance Page 1087 of 1128 16 of this Lease. (h) District Insurance Requirements. At all times during the Term, the District shall maintain, at the District’s expense, commercial general liability insurance, on an occurrence basis, insuring the District and its employees, agents and independent contractors against all bodily injury, property damage, personal injury and other covered loss arising out of its use and maintenance of the Lease Area. The City, its Governing Board, and their officers, employees, volunteers, and agents shall be named as Additional Insureds by endorsement as to claims and losses arising out of the Lease Area. Such coverage shall have limits in an amount not less than $1,000,000.00 per occurrence and $2,000,000.00 general aggregate. 13. Notices. Any notices required or desired to be served by either Party upon the other shall be addressed to the respective Parties as set forth below, or to such other addresses as from time to time shall be designated by the respective Parties: City: District: City of Palm Desert College of the Desert 73510 Fred Waring Drive 43-500 Monterey Avenue Palm Desert, California 92260 Palm Desert, California 92260 Attn: Todd Hileman Attn: Linda Costagliola City Manager Executive Administrative Assistant thileman@palmdesert.gov lcostagliola@collegeofthedesert.edu (760) 776-6488 (760) 773-2511 14. Quiet Enjoyment. The District covenants that City shall at all times during the term of this Lease peaceable and quietly have, hold and enjoy the use of the Lease Page 1088 of 1128 17 Area so long as City shall fully and faithfully perform the terms and conditions that it is required to do under this Lease. 15. District Rules and Regulations. The City agrees that it will abide by, keep and observe all reasonable rules and regulations which the District may make from time to time for the management, safety, care and cleanliness of the District Building, Lease Area, and the surrounding areas, a copy of which shall be provided to the City. 16. Drug Free and Tobacco Free District. No drugs, alcohol, and/or smoking are allowed at any time in any buildings and/or grounds on District property, including this District Building and the Lease Area. No City officials, employees, agents and representatives, and no visitors of the Lease Area are permitted to use controlled substances, alcohol, or tobacco at the District Building and the Lease Area. 17. Nondiscrimination. The District, City, and all others who from time to time may use the Lease Area and District Building described herein with the permission and on the terms and conditions specified by both Parties shall not discriminate in any manner against any person or persons on account of race, color, sex, creed, or national origin, including but not limited to the provision of goods, services, facilities, privileges, advantages, and the holding and obtaining of employment. 18. Binding on Successors; Assignment. The terms and conditions herein contained shall apply to and bind the heirs, successors in interest, exec utors, administrators, representatives and assigns of all the Parties hereto. However, neither Party may assign and/or transfer any duties, obligations, or interest in this Agreement, without the prior written consent of the other Party. 19. Severability. The invalidity of any provision in the Lease as determined by Page 1089 of 1128 18 court of competent jurisdiction shall in no way affect the validity of any other provision hereof. 20. Force Majeure. Neither Party shall be liable for non-performance due to a Force Majeure event; provided, however, that the non-performing Party notifies the other Party and resumes performance as soon as reasonably possible. “Force Majeure” means any act or event that prevents or delays the affected Party from performing its obligations in accordance with this Lease, if such act or event is beyond the reasonable control, and not the result of the fault or negligence, of the affected Party and such Party has been unable to overcome such act or event with the exercise of due diligence (includin g the expenditure of reasonable sums). Force Majeure includes but is not limited to: (i) acts of God and other natural phenomena, such as storms, extraordinary seasonal conditions, tornados, hurricanes, floods, lightning, landslides, earthquakes, pandemi c or epidemic; explosions or fires arising from lightning or other causes unrelated to the acts or omission of the Party seeking to be excused from performance; (iii) acts of war or public disorders, civil disturbances, riots, insurrection, sabotage or vandalism, epidemic, pandemic, terrorist acts, or rebellion; (iv) any industry or trade-wide national labor dispute or strike or any other strike or labor dispute not directed solely at a contractor or vendor; and (v) a reasonably unanticipated action, delay or failure to act by a governmental authority, including a moratorium on any activities related to this Lease. 21. Venue. Any action at law or in equity brought by either of the Parties hereto for the purpose of enforcing a right or rights provided for by this Lease shall be tried in a court of competent jurisdiction in the County of Riverside, State of California, and the Parties hereto waive all provisions of law providing for a change of venue in such Page 1090 of 1128 19 proceedings to any other county. 22. Attorneys’ Fees. In the event of any litigation or arbitration between the District and City to enforce any of the provisions of this Lease or any right of either party hereto, each Party shall bear its own costs. 23. Real Property Taxes. The City acknowledges that the District, as a public community college district, is generally not required to pay any general property taxes on the District Building. If the City’s use of the Lease Area under this Lease subjects the District Building to any form of tax the District shall immediately notify City and the City shall pay all applicable real and personal property taxes, and all other fees, charges, taxes, or assessments of any type, levied against or resulting from the City’s use of the Lease Area. Notwithstanding the foregoing, City shall have the right to contest any form of tax and District shall cooperate with City in this effort. 24. District’s Representative. District hereby appoints Vice President, Administrative Services, as its authorized representative to administer this Lease. 25. City’s Representative. City hereby appoints the City Manager with oversight and management of real property matters for the City of Palm Desert as its authorized representative to administer this Lease. 26. Entire Lease. This Lease is intended by the Parties hereto as a final expression of their understanding with respect to the subject matter hereof and as a complete and exclusive statement of the terms and conditions thereof and supersedes any and all prior and contemporaneous leases , agreements and understandings, oral or written, in connection therewith. This Lease may be changed or modified only upon the signed written consent of the Parties hereto. Page 1091 of 1128 20 27. Counterparts. This Lease may be executed in one or more counterparts, electronic or otherwise, each of which shall constitute an original. 28. Interpretation. The Parties hereto have negotiated this Lease at arm’s length with advice of their respective attorneys, and no provision contained herein shall be construed against the City solely because it prepared this Lease in its executed form. 29. Effectiveness/Governing Board Approval. This Lease shall become effective upon approval or ratification by the District’s Board of Trustees and the Palm Desert City Council. Notwithstanding the preceding sentence, this Lease is contingent upon the termination of that certain lease between the County and District, dated March 2, 1993 (the “County Lease”). If the County Lease is not terminated by the execution of this Lease, then either party may terminate this Lease by providing a written sixty (60) day notice thereof to the other party, whereupon this Lease shall be null and void and of no force and effect. 30. Assignment/Sublease. City shall not, without the prior written consent of District, which shall not be unreasonably withheld, conditioned, or delayed, assign, encumber or otherwise transfer this Lease or any interest herein directly or indirectly, by operation of law or otherwise, or sublet the Lease Area or any part thereof, or per mit the use or occupancy of the Lease Area by any party other than City (each, a “Transfer”), in each case without District’s prior written consent, which shall not be unreasonably withheld, conditioned, or delayed. Notwithstanding the foregoing, City may be permitted, without the consent of District, to assign or transfer this Lease to a successor or affiliate of City. Page 1092 of 1128 21 In Witness Whereof, the Parties have executed this Lease Agreement as of the date first written above. LESSEE: LESSOR: CITY OF PALM DESERT, Desert Community College District a political subdivision of the State of California By: By: L. Todd Hileman Rodrigo Garcia City Manager Vice President of Administrative Services Page 1093 of 1128 Exhibit A Exhibit “A” Depiction of Lease Area [Insert Floor Plan] Page 1094 of 1128 Exhibit B Exhibit “B” Fee Structure Annual Fee: $112,313.00 Annual Fee (The District may raise two-thirds (2/3) of the prior year’s Annual Fee at a rate not to exceed three percent (3%), and raise the remaining one-third (1/3) of the Annual Fee by a percentage increase equal to no more than the statutory Cost of Living Adjustment for the following fiscal year, as adopted by the California State Legislature, based on the prior year’s Annual Fee.) The District shall notify the City of the increased annual rate no later than May 31 each year. Upon proof of work and agreement between the City and the District, the City may deduct reasonable charges from the base rent for one -time landscape services described in 3(a) and 3(b) from the first-year lease agreement. Custodial Services: City bears all costs for custodial services within the common area and leased Library Premises. Facility Improvements (In Excess of Regular Maintenance): City bears all costs. All other service costs are included as part of the City’s Annual Fee, as set forth in the Lease. Page 1095 of 1128 Page 1096 of 1128 1 LEASE FOR PALM DESERT LIBRARY 73-300 Fred Waring Drive Palm Desert, California THIS LEASE is entered into as of ________________, 2024 by and between Desert Community College District (herein called the “District”) and the City of Palm Desert (herein called the “City”). District and City may be referred to in this Lease individually as a “Party” or jointly as the “Parties.” RECITALS This Lease is entered into upon the following facts, understandings, and intentions of the District and City. A. District owns certain real property located at 73-300 Fred Waring Drive, Palm Desert, California that contains a 41,189 square feet building (“District Building”), which includes a southern approximately 16,609 square feet area known as the Palm Desert Library (“Library Premises”) and an approximately 4,193 square feet area known as the “Common Area,” which is located on the College of the Desert campus, depicted in Exhibit “A,” attached hereto and incorporated herein by reference. B. The District desires to lease to the City, and City desires to lease from District, the exclusive use of the Library Premises and the nonexclusive, shared use of the Common Area pursuant to the terms of this Lease. NOW THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties agree as follows: Page 1097 of 1128 2 1. Lease. The District hereby leases the exclusive use of the Library Premises and grants the nonexclusive, shared use of the Common Area to the City, and City hereby leases the Library Premises and shared use of the Common Area from the District on the terms and conditions set forth in this Lease. 2. Description. The Lease Area leased hereby consists of the southern approximately 16,609 square feet of the District Building located at 73 -300 Fred Waring Drive, Palm Desert, California, known as the Library Premises, and the approximately 4,193 square feet of Common Area to be commonly shared and used by the City, the District, and any other tenants of the District Building, if any (hereinafte r, the Library Premises and the Common Area shall be jointly known as the “Lease Area”). 3. Annual Fee. The Lease Area is leased to the City for a base rate of One Hundred Twelve Thousand Three-Hundred and Thirteen dollars ($112,313.00) annually (“Annual Fee”). The Annual Fee due to District under this Lease shall be paid by City to District by the start of each fiscal year, no later than the first (1st) day of July each year, at the District’s address set forth hereinafter for notices, or to such other person and/or at such other address as District may direct by written notice to City. The Annual Fee includes the costs of rent, utilities, and general maintenance labor, as described below and as set forth in the Fee Structure in Exhibit “B.” The District may raise the Annual Fee each year by a rate of no more than three percent (3%) of the prior year’s Annual Fee amount. However, costs that are assigned to the lease for personnel (e.g. groundskeeper), which are party to the Annual Fee, may increase by a percentage equal to no more than the statutory Cost of Living Adjustment for the following fiscal year, as adopted by the California State Legislature, based on the prior year’s Annual Fee. The Page 1098 of 1128 3 District shall notify the City of the increased annual rate no later than May 31st each year. Upon proof of work and agreement between the City and the District, the City may deduct reasonable charges from the base rent for one-time landscape services described in 3(a) and 3(b) from the first-year lease agreement. If landscape services are less the not to exceed amount of $23,000.00, the City will reimburse the District a credit within fifteen (15) days after the work has been completed. The deduction in the not to exceed amount of $23,000.00 will be applied to year one of the base rent. The City will contract services for the following one-time cleanup of landscape work around the exterior of the leased area: i. An arborist contractor will trim the palms and prune the trees around the exterior of the leased grounds. Addition of (15) fifteen 24’ box trees be planted on the exterior of the leased grounds and that (7) seven trees, palms, and their stumps be removed. ii. Add decomposed granite to the leased grounds and new plantings be added to the courtyard. (a) Utilities. District shall provide, or cause to be provided, and pay for all utility services that City may require or desire in the operation and use of the Lease Area. (b) Maintenance Labor. The District shall provide, or cause to be provided, and pay for, all reasonable maintenance services within the District Building, including the Lease Area, as follows: District shall maintain the physical exterior and interior of the Lease Area and all structural and systematic components thereof, including, but limited to, roof (including roof membrane), air conditioning equipment, heating equipment, plumbing, electrical wiring and fixtures, communication wiring and fixtures including all Page 1099 of 1128 4 lights and replacement of light bulbs, windows, gutters, and structural parts, in good working condition and repair, in accordance with industry standards and in compliance with all applicable laws, ordinances, rules and regulations. Any maintenance services and/or facility improvements to the Lease Area that exceed the standard upkeep and maintenance of the Lease Area necessary for its regular use as set forth in section 4(a) shall be addressed as set forth in section 9 and mutually agreed upon by both parties. Any services performed by the District shall not interfere with City’s use or visibility of the Lease Area and shall not impede the City’s access to the Lease Area. 4. Use. a. The Lease Area is leased primarily for the purpose of providing space to operate and conduct a public library, for use by the City of Palm Desert, but may be used for any official business by the City of Palm Desert government with the prior written consent of the District, which shall not be unreasonably withheld, conditioned, or delayed. b. City shall have the exclusive possession of the Lease Area and shared common usage of the Common Area, which shall include the walkways, rest rooms, driveways, vehicular parking spaces, sidewalks, landscaped courtyards, planted areas, monument signage, and other similar facilities maintained by the District for its own use, other tenants, and the public. 5. Term. (a) The Term of this Lease shall commence upon execution of this Lease Agreement and subject to consideration of Section 6 below, continue in full force and effect for a period of five (5) years. (b) Any holding over by City after the expiration of said term shall be deemed a month- Page 1100 of 1128 5 to-month tenancy upon the same terms and conditions of this Lease. (c) City, in its sole discretion, shall have the right of first refusal as to the renewal of this Lease at the expiration of said term on whatever te rms and conditions the District may then offer. 6. Right to Early Termination. The City shall have the option to terminate the Lease, with a sixty (60) day advance written notice to the District. The District shall have the option to terminate the Lease, with a sixty (60) day advance written notice to the City prior to the end of the fiscal year (June 30) to take effect no earlier than the start of the following fiscal year, e.g. notice to terminate given May, 2024 to be effective July 1, 2024. Upon the termination of the Lease, District and City shall have no further rights, obligations or claims with respect to each other arising from the Lease, except for those obligations of under this Lease which expressly survive and continue after the termination or expiration of the Lease. 7. Consideration. In Consideration for the use of the Lease Area, City shall provide library services to City residents. 8. Custodial and Grounds. a. City shall provide their own custodial services within the Lease Area, including the Library Premises, and Common Areas, as set forth in Exhibit “A.” District shall provide and pay for custodial services within the remainder of the District Building, not including the Common Areas. b. District shall provide, or cause to be provided, and pay for all landscape and other exterior grounds care for the Lease Area. Such services shall be provided at a level which shall keep the Lease Area in the same condition as other portions of the District Building. Page 1101 of 1128 6 c. District shall, at its cost and expense, provide maintenance of parking lots designated for public library use. d. District represents and warrants that the exterior portions of the District Building, including access to the Library Premises and Lease Area, are compliant with ADA (including parking areas) as of the commencement of the Term, and that any capital expenditures or other expense to comply with Laws in effect as of the commencement of the Lease shall be at District’s expense and not passed through to City in the Annual Fee or otherwise. e. Upon prior written consent by the District, not to be unreasonably withheld, conditioned, or delayed, the City shall have the right to make reasonable exterior modifications to accommodate Information Technology (IT) infrastructure needs, provided it provides the District notice (which may be verbal or written) within five (5) days of commencing such work, provided the modification is not brought about by an emergency situation, in which case City may proceed with such work without notice. District shall approve or disapprove City’s request within ten (10) business days after District’s receipt thereof. f. Upon prior written consent by the District, not to be unreasonably withheld , conditioned, or delayed, the City shall have the right to change the existing monument sign to better reflect the use of the District Building as a public library only. District shall approve or disapprove City’s request within ten (10) business days af ter District’s receipt thereof. The City shall remove the sign within thirty (30) days of the expiration of the Lease. g. City shall not be required to remediate or pay (either as part of the Annual Fees or Page 1102 of 1128 7 otherwise) for the removal or remediation of Hazard ous Materials to the extent such Hazardous Materials exist in an amount in violation of applicable Hazardous Materials Laws and (i) were present in the Lease Area prior to the commencement of this Lease, or (ii) are placed in, on under or about the Lease A rea by District or any District’s employees, agents, contractors, other tenants, or third parties. 9. Maintenance/Alterations. (a) As set forth in section 3, District shall keep, repair, maintain, and replace as necessary, the physical exterior and interior of the Lease Area and all structural and systematic components thereof, including, but limited to, roof, air conditioning equipment, heating equipment, plumbing, electrical wiring and fixtures, communication wiring and fixtures including all lights and replacement of light bulbs, windows and structural parts, in good working condition and repair, in accordance with industry standards and in compliance with all applicable laws, ordinances, rules and regulations. (b) Within thirty (30) days after delivery of an invoice by District, City shall reimburse, or cause to be provided, and pay for any maintenance services and/or improvements to the Lease Area, including costs of any supplies, materials, and specialty equipment, that exceed the standard upkeep and maintenance of the Lease Area necessary for its regular use under section 4(a). Any such maintenance services and/or improvements as set forth in this subsection shall be permitted only upon the written request of the City Manager, or their designee, following the written approval of the Vice President for Administrative Services and/or Superintendent/President of the District. Any such maintenance services and/or improvements under this subsection shall comply with any and all applicable federal, state, local laws, rules, regulations, and any and all applicable District policies, Page 1103 of 1128 8 procedures, regulations, and guidance. (c) Any necessary repairs to the Lease Area shall be made by District as promptly as possible to keep the Lease Area in the condition necessary for its r egular use under section 4(a). The District understands timely response is required to ensure City operations continue with minimal interruption to ensure the safety of employees and delivery of services. To the extent reasonably feasible, the District s hall make efforts to commence repairs relating to any Base Building Systems, which shall include any mechanical, electrical, or plumbing system or component of the building, and any HVAC distribution system, and any fire safety system, within hours one (1) business day from receipt of written notice of the repair request, and to complete all other repairs within thirty (30) calendar days upon receipt of written notice. If, due to the nature of the particular repair or maintenance obligation, more than thirty (30) calendar days are reasonably required to complete the repair, the District shall not be in default under this Section, provided the District begins work within these thirty (30) calendars day period and diligently pursue this work to completion. All requests for repairs shall be submitted in writing by the City to the District. (d) If the City provides written notice to the District of an event or circumstance that requires the action of the District with respect to the replacement, repair or maintenan ce to the Lease Area or Base Building Systems serving the Lease Area as set forth in Section 3(c), above, and the District fails to provide such action as required by the terms of this Lease within the period specified in Section 9(c), the City may, but sh all not be obligated to, directly address the requested repair if: (1) the City delivers to the District an additional written notice advising the District that the City intends to take the required action to Page 1104 of 1128 9 address the repair if the District does not begin to schedule the required repair or maintenance within five (5) business days after the written notice of the repair request; and (2) the District fails to schedule the required work within the five (5) business day period. In the event the City makes the requested repair, District shall reimburse City for the reasonable costs of such repairs, within thirty (30) days of City’s providing District an invoice. (e) Upon prior written consent by the District, not to be unreasonably withheld, conditioned, or delayed, the City may at any time and from time to time at its expense, paint and decorate the interior of the Library Premises (including the right to paint the concrete block and stone walls), install trade fixtures and equipment, and make such changes, alterations, additions and improvements in and to the Library Premises, all as will in the judgment of the City better the Library Premises for the purposes for which the same are permitted to be used hereunder. District shall approve or disapprove City’s request within ten (10) business days after District’s receipt thereof. 10. Hold Harmless/Indemnification. a. Each Party to this Lease (“Indemnitor”) shall indemnify and hold harmless the other, its Agencies, Districts, Special Districts and Departments, their respective directors, officers, governing boards, elected and appointed officials, employees, agents and representatives (individually and collectively hereinafter referred to as “Indemnitees”) from any liability whatsoever, based or asserted upon any services of the Indemnitor, its officers, employees, subcontractors, agents or representatives arising out of or in any way relating to this Lease, including but not limited to property damage, bodily damage, or death, or any other element of any kind or nature whatsoever arising from the Page 1105 of 1128 10 performance of the Indemnitor, its officers, employees, subcontractors, agents or representatives Indemnitors from this Lease. The Indemnitor shall defend, at its sole expense all costs and fees, including, but not limited, to reasonable attorney fees, cost of investigation, defense and settlements or awards, the indemnities in any claim or action based upon such alleged acts or omissions. b. With respect to any action or claim subject to indemnification herein by the Indemnitor, the Indemnitor shall, at their sole cost, have the right to use counsel of their choice and shall have the right to adjust, settle, or compromise any such action or claim subject to the prior consent of Indemnitee; provided, however, that any such adjustmen t, settlement or compromise in no manner whatsoever limits or circumscribes the Indemnitor’s indemnification to Indemnitees as set forth herein. c. The Indemnitor’s obligation hereunder shall be satisfied when the Indemnitor has provided to Indemnitee the appropriate form of dismissal relieving Indemnitee from any liability for the action or claim involved. d. The specified insurance limits required in this Lease shall in no way limit or circumscribe the Indemnitor’s obligations to indemnify and hold harmless the Indemnitees herein from third party claims. e. In the event there is conflict between this clause and California Civil Code Section 2782, this clause shall be interpreted to comply with Civil Code 2782. Such interpretation shall not relieve the Indemnitor from indemnifying the Indemnitees to the fullest extend allowed by law. f. Survival of Indemnification. The paragraphs of this Paragraph 11 shall survive the expiration or earlier termination of this Lease until all claims against Indemnitor involving Page 1106 of 1128 11 any of the indemnified matters are fully, finally, and absolutely barred by the applicable statutes of limitations. 12. Insurance. (a) City Insurance. Without limiting or diminishing the City’s obligation to indemnify or hold the District harmless, the City shall procure and maintain or cause to be maintained, at its sole cost and expense, the following insurance coverages during the term of this Lease. Notwithstanding the foregoing, District shall accept City’s qualified self-insurance or risk pool insurance in lieu of the insurance policies set forth below. (b) Workers’ Compensation. If the City has employees as defined by the State of California, the City shall maintain statutory Workers’ Compensation Insurance (Coverage A) as prescribed by the laws of the State of California. Policy shall include Employers’ Liability (Coverage B) including Occupational Disease with limits not less than $1,000,000.00 per person per accident. The policy shall be endorsed to waive subrogation in favor of the District, its Board of Trustees, and their officers and employees. (c) Commercial General Liability. Commercial General Liability Insurance coverage, including but not limited to, premises liability, unmodified contractual liability, products and completed operation liability, personal and advertising injury, cyber liability, and cross liability coverage, covering claims which may arise from or out of the City’s performance of its obligation hereunder. Policy shall name the District, its Board of Trustees, and their officers, employees, volunteers, and agents as Additional Insureds by endorsement. Policy’s limit of liability shall not be less than $1,000,000.00 per occurrence combined single limit. If such insurance contains a general aggregate limit, it shall apply separately to this Lease or be no less than two (2) times the occurrence limit. Page 1107 of 1128 12 (d) Vehicle Liability. If vehicles or mobile equipment, which include tractors, trailers or similarly equipped vehicles, are used in the performance of the obligations under this Lease, then the City shall maintain liability insurance for all owned, non -owned or hired vehicles so used in an amount not less than $1,000,000.00 per occurrence combined single limit. If such insurance contains a general aggregate limit, it shall apply separately to this Lease or be no less than two (2) times the occurrence limit. Policy shall name the District, its Board of Trustees, and their officers, employees, volunteers, and agents as Additional Insureds by endorsement. If minor or patron transportation is prov ided by Lessee, the limits shall be changed to an amount not less than $5,000,000.00 combined single limit. (e) Property Insurance. “Special perils” form real property insurance covering the Lease Area including improvements, betterments, and loss of rents or loss of income providing protection against any covered peril included for an amount not less than the replacement cost of said Lease Area, including any Improvements thereto. Said policies shall contain a “Replacement Cost” endorsement and shall include deductible amounts acceptable to the District. Said policies shall name the District as an additional insured and loss payee, as its interests may appear. “Special perils” form personal property insurance covering the City’s personal property on the Lease Area against any peril included in the classification of “Special Form” for an amount not less than one hundred percent (100%) of the replacement cost. (f) Sexual Abuse and Molestation Coverage. Sexual abuse and molestation Page 1108 of 1128 13 coverage shall be no less than $4,000,000.00 per occurrence and $6,000,000.00 aggregate. (g) General Insurance Provisions – All Lines. Any insurance carrier providing insurance coverage hereunder shall be admitted to the State of California and have an A.M. BEST rating of not less than an A:VIII (A:8) unless such requirements are waived, in writing, by the District’s Risk Manager. If the District’s Risk Manager waives a requirement for a particular insurer such waiver is only valid for that specific insurer and only for one policy term. The City must declare its insurance self -insured retention for each coverage required herein. If such self -insured retentions exceed $500,000.00 per occurrence each such retentions shall have the prior written consent of the District Risk Manager before the commencement of this Lease. Upon notification of self -insured retention unacceptable to the District, at the election of the District’s Risk Manager, the City’s carriers shall either: 1) reduce or eliminate such self -insured retention as respects this Lease with the City, or 2) procure a bond which guarantees payment of losses and related investigations, claims administration, and defense costs and expenses. The City shall cause the City’s insurance carrier (s) to furnish the District with either 1) a properly executed original Certificate(s) of Insurance and certified original copies of Endorsements effecting coverage as required herein, and 2) if requested to do so orally or in writing by the District Risk Manager, provide original Certified copies of policies including all Endorsements and all attachments thereto, showing such insurance is in full force and effect. Further, said Certificate(s) and policies Page 1109 of 1128 14 of insurance shall contain the covenant of the insurance carrier(s) that a minimum of thirty (30) days written notice be given to the District prior to any material modification, cancellation, expiration or reduction in coverage of such insurance. If the City insurance carrier (s) policies does not meet the minimum notice requirement found herein, the City shall cause the City’s insurance carrier (s) to furnish a 30 -day Notice of Cancellation Endorsement. In the event of a material modification, cancellation, expiration, or reduction in coverage, this Lease shall terminate forthwith, unless the District receives, prior to such effective date, another properly executed original Certificate of Insurance and original copies of endorsements or certified original policies, including all endorsements and attachments thereto evidencing coverage’s set forth herein and the insurance required herein is in full force and effect. The City shall not commence operations until the District has been furnished original Certificates of Insurance and certified original copies of endorsements and if requested, certified ori ginal policies of insurance including all endorsements and any and all other attachments as required in this Section. An individual authorized by the insurance carrier to do so on its behalf shall sign the original endorsement for each policy and the Cert ificate of Insurance. It is understood and agreed by the Parties hereto that the 2City’s insurance shall be construed as primary insurance, and the District’s insurance and/or deductible and/or self-insured retentions or self-insured programs shall not be construed as contributory. The City is expressly obligated to provide for the legal defense and investigation of any claim against the District as an Additional Insured and for all costs Page 1110 of 1128 15 and expenses incidental to such defense or investigation. The insurance required herein, and the insurance carried by District, shall not be deemed to limit the respective insured Parties’ liability related to performance under this Lease. The procuring of insurance shall not be construed as a limitation on liability or as full performance of the indemnification and hold harmless provisions of this Lease. If, during the term of this Lease or any extension thereof, there is a material change in the scope of services; or, there is a material change in the equipment to be used in the performance of the scope of work; or, the term of this Lease, including any extension thereof, exceeds five (5) years; the District reserves the right to adjust the types of insurance and the monetary limits of liability required under this Lease, if in the District Risk Management’s reasonable judgment, the amount or type of insurance carrier by the City has become inadequate. If the City fails to procure any coverage require to be maintained hereunder, or renewal thereof, or to provide written evidence of the procurement or renewal thereof on a timely basis, the District may, but is not required to, after having given five (5) working days written notice to the City, procure such coverage and charge its cost to the City. The City shall pass down the insurance obligations contained herein to all tiers of subcontractors working under this Lease. The insurance requirement contained in this Lease may be met with a program(s) of self-insurance acceptable to the District. 27. The City agrees to notify the District of any claim by a third Page 1111 of 1128 16 party or any incident or event that may give rise to a claim arising from the performance of this Lease. (h) District Insurance Requirements. At all times during the Term, the District shall maintain, at the District’s expense, commercial general liability insurance, on an occurrence basis, insuring the District and its employees, agents and independent contractors against all bodily injury, property damage, personal injury and other covered loss arising out of its use and maintenance of the Lease Area. The City, its Governing Board, and their officers, employees, volunteers, and agents shall be named as Additional Insureds by endorsement as to claims and losses arising out of the Lease Area. Such coverage shall have limits in an amount not less than $1,000,000.00 per occurrence and $2,000,000.00 general aggregate. 13. Notices. Any notices required or desired to be served by either Party upon the other shall be addressed to the respective Parties as set forth below, or to suc h other addresses as from time to time shall be designated by the respective Parties: City: District: City of Palm Desert College of the Desert 73510 Fred Waring Drive 43-500 Monterey Avenue Palm Desert, California 92260 Palm Desert, California 92260 Attn: Todd Hileman Attn: Linda Costagliola City Manager Executive Administrative Assistant thileman@palmdesert.gov lcostagliola@collegeofthedesert.edu (760) 776-6488 (760) 773-2511 14. Quiet Enjoyment. The District covenants that City shall at all times during Page 1112 of 1128 17 the term of this Lease peaceable and quietly have, hold and enjoy the use of the Lease Area so long as City shall fully and faithfully perform the terms and conditions that it is required to do under this Lease. 15. District Rules and Regulations. The City agrees that it will abide by, keep and observe all reasonable rules and regulations which the District may make from time to time for the management, safety, care and cleanliness of the District Building, Lease Area, and the surrounding areas, a copy of which shall be provided to the City. 16. Drug Free and Tobacco Free District. No drugs, alcohol, and/or smoking are allowed at any time in any buildings and/or grounds on District property, including this District Building and the Lease Area. No City officials, employees, agents and representatives, and no visitors of the Lease Area are permitted to use controlled substances, alcohol, or tobacco at the District Building and the Lease Area. 17. Nondiscrimination. The District, City, and all others who from time to time may use the Lease Area and District Building described herein with the permission and on the terms and conditions specified by both Parties shall not discriminate in any manner against any person or persons on account of race, color, sex, creed, or national origin, including but not limited to the provision of goods, services, facilities, privileges, advantages, and the holding and obtaining of employment. 18. Binding on Successors; Assignment. The terms and conditions herein contained shall apply to and bind the heirs, successors in interest, executors, administrators, representatives and assigns of all the Parties hereto. However, neither Party may assign and/or transfer any duties, obligations, or interest in this Agreement, without the prior written consent of the other Party. Page 1113 of 1128 18 19. Severability. The invalidity of any provision in the Lease as determined by court of competent jurisdiction shall in no way affect the validity of any other provision hereof. 20. Force Majeure. Neither Party shall be liable for non-performance due to a Force Majeure event; provided, however, that the non-performing Party notifies the other Party and resumes performance as soon as reasonably possible. “Force Majeure” means any act or event that prevents or delays the affected Party from performing its obligations in accordance with this Lease, if such act or event is beyond the reasonable control, and not the result of the fault or negligence, of the affected Party and such Party has been unable to overcome such act or event with the exercise of due diligence (including the expenditure of reasonable sums). Force Majeure includes but is not limited to: (i) acts of God and other natural phenomena, such as storms, extraordinary seasonal conditions, tornados, hurricanes, floods, lightning, landslides, earthquakes, pandemic or epidemic; explosions or fires arising from lightning or other causes unrelate d to the acts or omission of the Party seeking to be excused from performance; (iii) acts of war or public disorders, civil disturbances, riots, insurrection, sabotage or vandalism, epidemic, pandemic, terrorist acts, or rebellion; (iv) any industry or trade-wide national labor dispute or strike or any other strike or labor dispute not directed solely at a contractor or vendor; and (v) a reasonably unanticipated action, delay or failure to act by a governmental authority, including a moratorium on any activities related to this Lease. 21. Venue. Any action at law or in equity brought by either of the Parties hereto for the purpose of enforcing a right or rights provided for by this Lease shall be tried in a court of competent jurisdiction in the County of Riverside, State of California, and the Page 1114 of 1128 19 Parties hereto waive all provisions of law providing for a change of venue in such proceedings to any other county. 22. Attorneys’ Fees. In the event of any litigation or arbitration between the District and City to enforce any of the provisions of this Lease or any right of either party hereto, each Party shall bear its own costs. 23. Real Property Taxes. The City acknowledges that the District, as a public community college district, is generally not required to pay any general property taxes on the District Building. If the City’s use of the Lease Area under this Lease subjects the District Building to any form of tax the District shall immediately notify City and the City shall pay all applicable real and persona l property taxes, and all other fees, charges, taxes, or assessments of any type, levied against or resulting from the City’s use of the Lease Area. Notwithstanding the foregoing, City shall have the right to contest any form of tax and District shall cooperate with City in this effort. 24. District’s Representative. District hereby appoints Vice President, Administrative Services, as its authorized representative to administer this Lease. 25. City’s Representative. City hereby appoints the City Manager with oversight and management of real property matters for the City of Palm Desert as its authorized representative to administer this Lease. 26. Entire Lease. This Lease is intended by the Parties hereto as a final expression of their understanding with respect to the subject matter hereof and as a complete and exclusive statement of the terms and conditions thereof and supersedes any and all prior and contemporaneous leases, agreements and understandings, oral or written, in connection therewith. This Lease may be changed or modified only upon the Page 1115 of 1128 20 signed written consent of the Parties hereto. 27. Counterparts. This Lease may be executed in one or more counterparts, electronic or otherwise, each of which shall constitute an original. 28. Interpretation. The Parties hereto have negotiated this Lease at arm’s length with advice of their respective attorneys, and no provision contained herein shall be construed against the City solely because it prepared this Lease in its executed form. 29. Effectiveness/Governing Board Approval. This Lease shall become effective upon approval or ratification by the District’s Board of Trustees and the Palm Desert City Council. Notwithstanding the preceding sentence, this Lease is contingent upon the termination of that ce rtain lease between the County and District, dated March 2, 1993 (the “County Lease”). If the County Lease is not terminated by the execution of this Lease, then either party may terminate this Lease by providing a written sixty (60) day notice thereof to the other party, whereupon this Lease shall be null and void and of no force and effect. 30. Assignment/Sublease. City shall not, without the prior written consent of District, which shall not be unreasonably withheld, conditioned, or delayed, assign, encumber or otherwise transfer this Lease or any interest herein directly or indirectly, by operation of law or otherwise, or sublet the Lease Area or any part thereof, or permit the use or occupancy of the Lease Area by any party other than City (each, a “Transfer”), in each case without District’s prior written consent, which shall not be unreasonably withheld, conditioned, or delayed. Notwithstanding the foregoing, City may be permitted, without the consent of District, to assign or transfer this Lease to a successor or affiliate of City. Page 1116 of 1128 21 In Witness Whereof, the Parties have executed this Lease Agreement as of the date first written above. LESSEE: LESSOR: CITY OF PALM DESERT, Desert Community College District a political subdivision of the State of California By: By: L. Todd Hileman Rodrigo Garcia City Manager Vice President of Administrative Services Page 1117 of 1128 Exhibit A Exhibit “A” Depiction of Lease Area [Insert Floor Plan] Page 1118 of 1128 Exhibit B Exhibit “B” Fee Structure Annual Fee: $112,313.00 Annual Fee (The District may raise the prior year’s Annual Fee at a rate not to exceed three percent (3%). However, costs that are assigned to the lease for personnel (e.g. groundskeeper), which are party to the Annual Fee, may increase by a percentage increase equal to no more than the statutory Cost of Living Adjustment for the following fiscal year, as adopted by the California State Legislature, based on the prior year’s Annual Fee.) The District shall notify the City of the increased annual rate no later than May 31 each year. Upon proof of work and agreement between the City and the District, the City may deduct reasonable charges from the base rent for one-time landscape services described in 3(a) and 3(b) from the first -year lease agreement. Custodial Services: City bears all costs for custodial services within the common area and leased Library Premises. Facility Improvements (In Excess of Regular Maintenance): City bears all costs. All other service costs are included as part of the City’s Annual Fee, as set forth in the Lease. Page 1119 of 1128 Page 1120 of 1128 C.O.D. LEASE AGREEMENT Gary Shaffer City Manager/Library February 15, 2024 Page 1121 of 1128 DETAILS WHY WE’RE HERE •City has opted to take over library services from the County •Reason: Allows for more local control and for funds to stay local TEMPORARY LOCATION •City to offer library services as of July 1, from the present library facility73-300 Fred Waring Dr. on the COD Campus •While a new library is designed & built on city -owned property LEASE NEGOTIATION •Building is jointly -owned by City, County & College •Lease payment of $112,313 provides cost recovery for COD •By having public safety function provided by Sheriff, city will save $46,648 annually 2Page 1122 of 1128 Lease Features Credit City receives a credit of $23,000 in year one in return for initial groundskeeping 1 Cancellation Clause 60-day cancellation option should the new building be ready early 2 Maintenance Building’s roof, fixtures and systems (e.g. HVAC, plumbing, etc.) are covered 3 Flexibility City can make modest improvements (e.g. paint, some carpet, etc.) 4 Reasonable increases Rent increases cannot exceed 3% for utilities portion & no more than the COLA for the staff portion. 5 3Page 1123 of 1128 THANK YOU Gary Shaffer gshaffer@palmdesert.gov 760.776.6460 Page 1124 of 1128 Page 1 of 1 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 15, 2024 PREPARED BY: Andrea Staehle, Human Resources Manager REQUEST: APPROVE AMENDMENT NO. 2 TO THE CITY MANAGER’S EMPLOYMENT AGREEMENT EFFECTIVE MARCH 1, 2024 RECOMMENDATION: Approve Amendment No. 2 to the City Manager’s Employment Agreement, with L. Todd Hileman (Exhibit A) effective March 1, 2024. BACKGROUND/ANALYSIS: On February 7, 2024, the City Council held a goal setting and City Manager evaluation session. In closed session, the City Manager received an evaluation, and made a request to City Council to amendment his contract regarding vacation. City Council agreed to consider the amendment at the City Council meeting following the goal setting and evaluation session. This would be the second amendment to the contract. In accordance with the request and Council direction, the amendment contains the following changes: 1. 3.9 Vacation Leave Benefits: Accrue two hundred forty hours of vacation each year. Legal Review: This report has been reviewed by the City Attorney’s office. FINANCIAL IMPACT: The contract amendment includes an increase of one week of vacation. The potential cost of the additional vacation, if cashed out, is $6,070.67. ATTACHMENTS: 1. Exhibit A: City Manager Employment Contract Amendment No. 2 Page 1125 of 1128 Page 1126 of 1128 CITY MANAGE EMPLOYMENT AGREEMENT AMENDMENT NO. 2 1. Parties and Date. This Amendment No. 2 to the City Manage Employment Agreement is by and between the City of Palm Desert (“City”) and Todd Hileman (“Employee”), and effective March 1, 202 4. City and Employee are sometimes individually referred to as “Party” and collectively as “Parties.” 2. Recitals. 2.1 The Parties entered into an agreement entitled City Manager Employment Agreement dated March 1, 2021 (“Agreement”). 2.2 Parties now desire to change certain provision of the Agreement as specified below. NOW, THEREFORE, the Parties agree as follows: 3. Terms. 3.1 Section 3.9 Vacation Leave Benefits. Section 3.9 of the Agreement is hereby amended in its entirety to read as follows: “3.9 Vacation Leave Benefits Upon commencement of employment, the City Manager shall have access to an accrued balance of one hundred sixty (160) hours of vacation. Additionally, City Manager shall accrue two hundred forty (240) hours of vacation each year, accrued at the rate of 9.23 hours per pay period, subject to a maximum accrual balance of 320 hours. Once the limit of 320 hours has been reached accrual shall cease until such time as the balance falls below the maximum.” 3.2 Except as amended by this Amendment No. 2, all other terms and conditions of the Agreement shall remain unchanged and shall remain in full force and effect and shall govern the actions of the parties under this Amendment No. 2. From and after the date of this Amendment No. 2, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 2. IN W ITNESS WHEREOF, the Parties hereto have caused this instrument to be executed the 15 day of February, 2024. Page 1127 of 1128 EMPLOYEE L. Todd Hileman, City Manager CITY OF PALM DESERT Karina Quintanilla, Mayor ATTEST: Niamh M. Ortega, Assistant City Clerk APPROVED AS TO FORM: Isra Shah, City Attorney Page 1128 of 1128